Molson Shareholders Okay Plan to Merge With Coors

Fri January 28, 2005 9:51 AM GMT-05:00

MONTREAL (Reuters) - Molson Inc. shareholders voted overwhelmingly in favor of a plan to merge Canada's oldest brewer with U.S.-based Adolph Coors Co. at a special meeting in Montreal on Friday.

The plan, which won the favor of 80.2 percent of Molson class A shareholders and 84.3 percent of its class B shareholders. It would create the world's fifth-largest brewer by volume.

Molson's Class A shares were up 80 Canadian cents at C$39.15 on the Toronto Stock Exchange shortly after the opening of trade on Friday.

Coors shareholders are scheduled to vote on the merger plan on Feb. 1.

Coors shares were up $1.36 or 1.8 percent at $76.25 on the New York Stock Exchange.

Molson Chairman Eric Molson said the vote represented overwhelming support from shareholders.

"Molson management and the board are very pleased that the shareholders have supported the merger and understood the strategic and economic value of this transaction," he told the meeting.

Molson added that the merger would allow the combined company to compete in the rapidly consolidating global beer market.

Molson shareholders will own 55 percent of the combined company, with the Molson and Coors families sharing voting power. Coors Chief Executive Leo Kiely and chief financial officer Tim Wolf will keep those posts at the merged company.

($1=$1.24 Canadian)

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