Tussle for acquisition of GLC Carbon USA Inc intensifies, Oxbow increases acquisition price to C$ 14

With reference to the earlier announcement dated February 05, 2007, March 12, 2007 wherein the Company had informed that Rain Commodities (USA) Inc, a wholly owned subsidiary of the Company (WOS) has entered into a definitive agreement with Great Lakes Carbon Income Fund, Toronto, Canada ("the Fund"), inter-alia to acquire all the assets of the Fund, consisting of 73.56% ownership interest in GLC Carbon USA Inc. ("GLC Carbon USA") and certain Unsecured Subordinated Notes of Huron Carbon ULC, a wholly owned subsidiary of GLC Carbon USA at a price of C$ 11.60 per Unit and the Company also informed that Rain Commodities (USA) Inc. ("Rain USA") has amended the terms of their previously announced agreement under which Rain USA agreed to acquire all of the assets of the Fund (the "Proposed Rain Transaction") by increasing the effective cash price per unit ("Unit") to be paid from C$ l1.60 to C$ 13.25.

On March 12, 2007, the Fund announced that it received a proposal (the "Oxbow Proposal") from Oxbow Carbon & Minerals Holdings, Inc. ("Oxbow") to acquire all of the assets of the Fund at an effective price of C$ 13.50 per Unit in cash. As previously announced, the Board of Trustees determined that the Oxbow Proposal constituted a superior proposal under the Fund's existing agreement with Rain USA and Rain Canada, and gave Rain Canada a right until March 20, 2007 to match the Oxbow Proposal.

Rain Commodities Ltd has announced that the Company's Wholly owned subsidiaries namely Rain Commodities (USA) Inc. ("Rain USA") have further amended the terms of their agreement under which Rain USA and Rain Commodities (Canada) Inc. ("Rain Canada") agreed to acquire all of the assets of the Fund (the "Proposed Rain Transaction") by increasing the effective cash price per unit of the Fund ("Unit") to be paid from C$ 13.25 to C$ 13.50 (the "Amended Rain Offer").

Further the Company has informed that, on March 20, 2007, the Fund received a revised proposal (the "Oxbow Proposal") from Oxbow Carbon & Minerals Holdings, Inc. ("Oxbow") to acquire all of the assets of the Fund at an effective price of C$ 14.00 per Unit in cash. Rain USA will have a time till March 27, 2007 to match the Oxbow proposal.

About the Fund

The Fund is a trust established to hold indirectly the securities of GLC Carbon USA Inc. ("GLC"). The Fund currently holds an indirect 73.56% interest in GLC. GLC is the world's largest producer of both anode and industrial grade calcined petroleum coke ("CPC"). Anode grade CPC is used in the production of aluminum. Industrial grade CPC is used in the production of other industrial materials including titanium dioxide. GLC produces CPC at its facilities located in Port Arthur, Texas; Enid, Oklahoma; Baton Rouge, Louisiana; and La Plata, Argentina.

Source : Equity Bulls

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