Two More Big Gains

Article Excerpt

Our focus on high-quality stocks attracts an above average number of takeover offers. Besides Falconbridge, two more of our long-time favourites are now the target of buyout offers: INCO LTD. $85.50 (Toronto symbol N; Conservative Growth Portfolio; Resources sector; SI Rating: Average) is the world’s largest producer of nickel. It recently dropped a plan to merge with U.S.-based copper producer Phelps Dodge Corp. It now seems likely that an $86.00-a-share all-cash offer from Brazilian mining firm Companhia Vale do Rio Doce (CVRD) will succeed. We first recommended Inco at $41 in our January, 1995 issue, and the CVRD offer works out to a gain of 109.8%. Inco will undoubtedly try to attract another bidder, if only to get CVRD to raise its bid. In the meantime, Inco investors should hold their shares, and tender them to get the full $86.00 and avoid paying brokerage fees. SLEEMAN BREWERIES LTD. $17.38 (Toronto symbol ALE; Aggressive Growth Portfolio, Consumer sector, SI Rating: Average) has accepted a friendly $17.50-a-share…

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