Industrial Alliance Insurance and Financial Services Inc. announced Friday that it plans to mail its take-over bid circular to Clarington Corp. shareholders no later than Nov. 21, 2005, and shared its reasons for keeping the bulk of Clarington funds intact.

Responding to CI Financial’s increased offer for Clarington Industrial Alliance said it will review CI’s offer for Clarington fully, and determine whether or not it will vary any of the terms of its cash, and cash and share a share offer, including its $14.25 a share price.

Industrial Alliance said its offer “would take advantage of its existing infrastructure and scale, which over time is expected to result in significant improvements to management expense ratios for Clarington mutual fund investors.”

CI has pledged to cut MERs for Clarington unitholders if its $14.75 a share bid succeeds.

“IA is committed to providing competitively-priced products,” said Normand Pépin, executive vp of Industrial Alliance, in a release. “In fact, our segregated fund line-up has expense ratios on average 40 to 50 basis points lower than comparable segregated funds offered by CI and its affiliates.”

In contrast, to CI’s announced intent to merge the vast majority of Clarington’s funds into its own line-up, Industrial Alliance said it plans to keep the vast majority of the Clarington funds intact.

“Clarington is a dynamic corporation with talented people and has brought a great deal of innovation to the market,” said Pépin. “We intend to keep the Clarington team, including wholesalers, largely intact. They have successfully competed with the larger fund companies, and gained significant market share.”

“Investors selected Clarington funds for a reason,” added David Scandiffio, president of Industrial Alliance Fund Management Inc. “By merging Clarington funds into bigger, less nimble funds from a larger complex, CI would fundamentally be changing the nature of the offering, including distribution features, tax efficiency, and the potential for performance.”

Industrial Alliance said it remains fully committed to its wealth management strategy and, whether by organic growth or through acquisitions, will continue to build its asset management operations.

The Industrial Alliance offer is subject to acceptance of the offer by shareholders of at least 66 2/3% of the outstanding common shares of Clarington calculated on a fully diluted basis, and receipt of all required regulatory approvals.