Battle for Vector

[N1]

I see there is a very interesting battle underway for control of Vector Aerospace!

 

IMP is declaring 14% ownership with Northstar holding 10%.

 

Standard Aero is reputedly the buyer of the fixed wing side.

 

So who knows whats going on there?

 

Looks like some changes no matter what though.

[N1]

Here it comes. Looks like the end for the existing management!

 

 

Group of Competitors Launches Second Attempt to Control Vector Aerospace Board

Friday July 4, 3:57 pm ET

 

Dissidents Seek Control Without Paying Premium; Offer No Alternative Strategy

ST. JOHN''S, NF, July 4 /CNW/ - Vector Aerospace Corporation (TSX: RNO - News) announced today that it has received a requisition for a special shareholders'' meeting from 2007775 Ontario Inc. to again consider the election of a dissident slate of directors. Vector has been informed that the numbered company''s requisition is on behalf of a group of shareholders that includes Northstar Aerospace, Inc. (TSX: NAS - News), and IMP Group Ltd., both competitors of Vector, who are seeking control of the Company.

The dissidents have requested the calling of another meeting of shareholders despite the fact that Vector shareholders demonstrated their support of the existing board and management by electing the management slate over the dissident slate at Vector''s annual meeting only two months ago.

Members of Vector''s board and management recently met with a representative of the dissident shareholders. During this meeting the dissidents failed to present any credible alternative to the strategy currently being pursued by Vector management and suggested no initiatives to enhance the shareholder value of Vector.

Vector''s board will meet shortly to deal with the requisition in accordance with applicable legal requirements.

The Company''s board of directors is committed to maximizing value for all Vector shareholders. In addition to exploring strategic alternatives for the Company''s fixed-wing operations, an initiative that was announced on May 15, 2003, the Company recently retained TD Securities Inc. to assist it in reviewing other value enhancement initiatives. The board of directors and management believe that the sale of the fixed-wing operations, in conjunction with a strategy focused on the global growth opportunities in the Company''s helicopter business, will provide shareholders with value substantially in excess of the current trading price of the common shares.

"The dissidents are attempting to gain control of Vector without paying a fair premium to the Company''s shareholders," said Mark Dobbin, Chairman and Chief Executive Officer of Vector. "Their covert attempt to elect a dissident slate of directors failed at the annual meeting, yet they refuse to accept the decision of Vector shareholders. We are disturbed by the fact that Vector shareholders don''t have benefit of full and fair disclosure of our competitors'' business plan for this company. This latest request will require the Company to go through the unnecessary and expensive process of holding a second shareholders'' meeting. Further, it will potentially disrupt the ongoing sale process for the fixed-wing operations."

Vector is an established world leader in full-service helicopter repair and overhaul with significant global growth opportunities. The company has emerged from a difficult period in the aerospace industry with a focused business plan that has already resulted in a return to profitability and excellent growth prospects.

"We are excited about the growth opportunities ahead in the military and parapublic helicopter markets and with homeland defense as a result of increased security concerns in the US," said Mr. Dobbin. "We are also pursuing considerable outsourcing opportunities with large helicopter fleet operators. This action by the Northstar-led group is a blatant attempt to transfer the benefits of Vector''s turnaround from our shareholders to this group."