(December 15 – 14:15 ET) – The Special Committee of the Board of Directors of Mackenzie Financial Corporation has confirmed that its value maximization process, established in response to the unsolicited bid for Mackenzie by C.I. Fund Management, will continue whether or not C.I. extends its offer beyond December 22, 2000.

The Committee made this statement in response to comments attributed to C.I.’s CEO that C.I will allow its bid for Mackenzie to expire on December 22, 2000 if the Ontario Securities Commission does not terminate Mackenzie’s Shareholder Rights Plan. The OSC has not yet advised whether a hearing will take place to consider CI’s request.

The Board of Mackenzie has previously stated that acceptance of C.I.’s offer is not in shareholders’ best interests. The Board has recommended that the C.I. offer be rejected.

Mackenzie’s financial advisers, CIBC World Markets and Merrill Lynch, each concluded that C.I.’s offer is inadequate from a financial point of view. The value of the offer has declined since it was first announced and Mackenzie shares have always traded at prices which are higher than the value of C.I.’s offer.

“Our value maximization process is underway and will continue, even if C.I. walks away from its unsolicited and inadequate bid,” said Alan J. Dilworth, chair of the Special Committee of the Board of Directors.

“We have been working non-stop to develop alternatives which offer superior value to our shareholders,” said James Hunter, president and CEO of Mackenzie Financial Corporation. “Our work will not end, even if C.I. abandons its bid. We are confident in our ability to develop an attractive alternative for our shareholders.”

Mackenzie is in discussions with a number of parties interested in proposing a competing transaction, and has established two data rooms to facilitate the due diligence process which is being conducted by prospective buyers. Data room visits have been made by interested parties and discussions and negotiations are ongoing.
-IE Staff