CRYSTALLINE MANAGEMENT INC.

CRYSTALLINE MANAGEMENT INC.

February 21, 2011 17:11 ET

Crystalline Management Asserts Its Position in the Western Financial Group Takeover Offer From Desjardins Financial Corp.

MONTREAL, QUEBEC--(Marketwire - Feb. 21, 2011) - As a long term holder of all of Western Financial Group's ("WFG") publicly traded securities, Crystalline Management Inc. would like to state its position with regards to the current offer to purchase by Desjardins Financial Corporation Inc ("DFC").

While we agree with TD Securities Inc.'s fairness opinion as stated in the Director's Circular that the financial consideration being offered is fair for the common shares, we wish to point out that the directors of WFG have not given a recommendation with regard to the offer to purchase the Series Three and Series Four First Preferred Shares.

We appreciate the liquidity event offered by the acquirer. However, given the credit strength of the Company once the acquisition completed, we believe it is in the interests of WFG fixed income securities holders not to tender the series 3 and 4 preferred or convert their series 2 and 5 preferred and convertible bonds. We also wish to point out that in the opinion of our counsel, the intentions of DFC as expressed in its Take-Over Bid Circular, would result in the series 2 and 5 preferred shares converting, according to their respective terms, into cash at the takeover price, thereby allowing continuous liquidity post take-over.

Crystalline Management Inc. is registered with the OSC and AMF as a Portfolio Manager and manages the Amethyst Arbitrage Fund.

This press release does not constitute investment advice nor an offer to buy or to sell securities. Investors are strongly encouraged to seek professional advice prior to entering any investment transactions.

Contact Information

  • Bradley P. Semmelhaack
    514-284-0248, ext. 246