QU BEC CITY, Aug. 14 /PRNewswire-FirstCall/ -- Cossette Inc. (Cossette or the Company) provided today an update on the strategic review process initiated by Cossette's Board of Directors on July 20, 2009 in response to the unsolicited and non-binding proposal from Cosmos Capital Inc. (Cosmos). With the assistance of their financial and legal advisors, the Board of Directors and the Special Committee of independent directors of Cossette have conducted a careful review of Cosmos' unsolicited and non-binding proposal and continue to diligently evaluate all of Cossette's strategic alternatives.
It is the view of Cossette's Board of Directors, on the advice of its financial and legal advisors, that:
- Cosmos' proposal is highly opportunistic; and - Cosmos' proposal is highly conditional, undervalues Cossette and is financially inadequate.
As part of this strategic review process, the Company's financial advisor, BMO Capital Markets, has been instructed to expeditiously solicit proposals from third parties interested in acquiring the Company. The Board of Directors and the Special Committee believe that a public process with active solicitation of interest from a range of qualified parties is in the best interests of the Company and its shareholders and will facilitate offers reflecting the full and fair value of Cossette.
Mr. Claude Lessard, Cossette's Chief Executive Officer and President, declared "Mr. Pierre Delagrave, President, Cossette Media and Fjord Interactive Marketing and Technology, and myself, both founding partners of the Company, are fully aligned with the Special Committee's and the Board's decision to solicit proposals to acquire the Company to maximize value for all shareholders. We will cooperate with the Board and the Special Committee to successfully implement a Board supported transaction. We are confident that this exercise will be accomplished with the highest regard for Cossette's traditional values and in harmony with the best interests of our two key assets, our employees and clients.
The Board of Directors and the Special Committee remind the shareholders of the Company that no offer has yet been made for the shares of the Company and that they should not take any action at this time. The Board of Directors, the Special Committee and the management of Cossette remain committed to building and maximizing value for all shareholders and will provide additional information to shareholders when appropriate.
Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,485 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.
COSSETTE INC.
CONTACT: Financial Analysts only: Martin Faucher, Vice-President and
Chief Financial Officer, (418) 521-3784; Investors: Francis Trudeau, Director,
Acquisitions and Investor Relations, (514) 282-4633; Medias: Sylvie Isabelle,
Optimum Public Relations, (418) 521-3184; Source: Cossette Inc.,
http://www.cossette.com/
