The Vancouver Sun from Vancouver, British Columbia, Canada • 25

i 1 j( i is ui) lit SECTION GERALD PROSALENDIS BUSINESS EDITOR 732-2520 WEDNESDAY, AUGUST 23, 1 995 VSE 835.76 TSE 300 4,601.68 TSE 100 25 278.94 TSE 35 --30 242.64 MONTREAL .39 2,255.10 DOW 5.64 4,620.42 NIKKEI 6.72 17,877.77 LONDON mOQ 3,530.2 HANG SENG 46.71 8,947.19 CANADIAN .0011 $.7368 US US (Cdn consumer rate) $1 .3767 CANADIAN IN .01 71.48 UK POUND. $2.0798 Cdn GOLD (N.Y.) $383.55 SILVER (N.Y.) $5.69 OIL (W.Tex. Int.) 4 $.40 $18.63 Cdn BANK RATE 6.70 PIPELINE PROJECT Financing revelation prompts further drop in Arakis share price Cash $305 million US shy of original target Business Editor Gerald Prosalendis' electronic-mail address is prosalendis ppress.wimsey.com day for shareholders to vote on the proposal. Shareholders are expected to approve it. On Saturday, however, Barron's magazine published an article questioning the feasibility of the project.

That caused the slock lo drop by $4': to $13' well below the price at which AGI was to acquire its shares. On Tuesday. Arakis and AGI issued separate releases insisting that despite the decline in the price, the financing is still intact. They also said that, instead of receiving $3 15 million cash by Sept. 15.

Arakis would receive only $40 million. The balance would be provided by way of "irrevocable letters of credit andor similar banking instruments to buy pipeline and oilfield equipment." said Arakis. The stock then dropped by another $1 to $1 1 before regulators stepped in to seek further clarification. DAVID BAINES Sun Business Columnist The share price of Vancouver-based Arakis Energy Corp. fell for the fourth consecutive session Tuesday after the company revealed the cash component of a major financing deal for its Sudanese oil project would be far less than, originally announced.

Arakis stock dropped by $1 to $1 1 'i on 6.2 million shares on Nasdaq third highest volume in the United States after the company said the cash component of a $750-million US financing package, originally set at $1545 million, would only be $40 million. The announcement prompted Vancouver Stock Exchange and Nasdaq officials to halt trading at 11:31 a.m. pending clarification of the company's financing arrangements. million US in debt and equity provided by Arab Group International. As originally announced, the group was to buy 23 million shares at $15 US each for a total of $345 million in tranches starting at on July 27 and ending on Sept.

15. The balance of $405 million was to be provided by way of letter of credit to be drawn against against development and construction costs, or by provision of goods and services for the project. The financing, however, was delayed when the VSE determined the transaction, which would give AGI a 43-per-cent interest in Arakis, required shareholder approval. That forced Arakis to schedule a special meeting for Thurs VSE vice-president of compliance Warren Funt said he expects the company will issue a clarifying release, but didn't know whether the matter would be resolved before the markets opened this morning. Arakis president Terry Alexander, who has consistently declined to talk with The Vancouver Sun, failed to return several telephone messages Tuesday.

Arakis' share price soared to $26 US in late July on plans to develop a massive oil concession in the Sudan and build a 950-mile pipeline to the Red Sea. With 30 million shares outsuuiding, fully diluted, the company's total stock price was more than $1 billion Cdn. The project was to be financed through $750 COLUMN LAND USE ENTERTAINMENT I I ost Canadian companies i I report meir snipmems to ana I I to 6 U.S. are flowing as LJ LJ fast or faster since the North Griffiths beams at arena unveiling Forest Code ruling shuts down cut at gas project GORDON HAMILTON Sun Forestry Reporter I ft- I if lfWJ 3 4 Hpf 7 5 Ux'T- American free-trade agreement came into effect almost two years ago, a Canadian Chamber of Commerce survey suggests. Thafs despite a surge in the volume of trade, the country's largest business group said Tuesday.

The increases in volume of two-way trade both with the U.S. and Mexico has been phenomenal," said David Hecnar, senior policy analyst at the chamber. The importance of removing costly hurdles to North American trade, including customs delays, is underscored by the fact trade has been the engine of growth for the Canadian economy since the recession and two-way trade with the U.S., Canada's largest trading partner by far, now amounts to $1 billion a day. Taken as a whole, the results roughly 500 of 2,000 businesses responded to the survey are "generally positive," the chamber said. Over-all, the vast majority found little or no delays of shipments" to the U.S.

and Mexico. A small proportion of companies, however, are finding it takes more time for goods to clear Mexican customs. A "significant" minority indicated they were experiencing delays that were hurting their ability to do business. The most frequently cited cause of delays at Canadian customs was a shortage of staff, also the second most common problem with U.S. and Mexican customs.

Still, more than three-quarters of the businesses that responded found no difference in the time it takes for their shipments to clear Canadian, U.S. and Mexican customs since the trade deal took effect Jan. 1 1 994. Southam News Orca Bay surfaces as new company DAPHNE BRAMHAM Sun Economics Reporter From the minute Arthur Griffiths started chasing a professional basketball team, he knew it would cost his family control of the Vancouver Canucks hockey team. But after unofficially opening GM Place Tuesday the stadium where the Canucks and the Grizzlies of the National Basketball Association will play Griffiths said it was worth it.

"Absolutely it was worth it. This was a hockey club worth $60 to $(55 million three or four years ago. Now, it's an organization worth over $400 million," Griffiths said in an interview at rinkside in the new stadium. "I couldn't possibly do that. Our whole family couldn't have done that.

You have to realize this is much bigger than anything else that was tliilliHi IAN LINDSAY Vancouver Sun QUICK DRAW: Arthur Griffiths drops first puck on GM Place ice between Canucks' Pat Quinn, Grizzlies' Stu Jackson The B.C. Supreme Court has quashed a limber-cutting licence for gas exploration in northeastern B.C., shutting down a planned well by Imperial Oil. In a decision this week. Justice Marion Allan ruled the provincial government failed to follow its own legislation, particularly the Forest Practices Code by issuing the licence to cut timber in the first place. One agency, the ministry of energy, mines and petroleum, made tlie decision authorizing Imperial Oil to go ahead when the forests ministry had a legal responsibility lo make its own decision based on the code, the court ruled.

Although the forests ministry objected on environmental grounds to a road into the well site at Bel-court Creek, it deferred lo energy on the final decision. The case was brought before the court by guide-outfitter Gary Koov man, who operates in the Belcourt Creek region. It is the first time the Code has been interpreted by the courts, said Greg McUade, of the Sierra Legal Defence Fund, counsel for two environmental groups at the hearing. I le said there are "real concerns" about the environmental impact of roads being built to well sites in the province's northeast. McDade said the lead agency, in this case energy, has routinely made the final decision on such land-use issues.

That practice must end, he said. Please see CODE. C2 100 per cent of the arena. The limited partnerships didn work out. When theGrifDths decided to pursue the bas- So, McCaw and the Griffiths reached an ketball franchise, Arthur Griffiths said they agreement, knew they didn't have the financial Jhxnlntplv it wnx worth capacity to put up the million US ever originally imagined, especially when you add the basketball team." Orca Bay Sports and Entertainment which supercedes Northwest Sports Enterprises Ltd.

will be the holding company for: 100 per cent of the Grizzlies; 100 per cent of the stadium; 87 per cent of the Canucks (13 per cent remains publicly held); m0 Customs copes with trade Roughly 500 Canadian businesses say their shipments were clearing customs as fast or faster since the North American free-trade agreement was implemented despite increased trade. franchise fee. So. he made an agreement with John McCaw, a Seattle multi-millionaire thanks to cellular phones, and On- i A long-time friend of the Gru nth s. IV A DA I That acrreement was that 77 is was a hockey club worth $60 to $65 million three or four years ago.

Now, it an organization worth over $400 million. ARTHUR GRIFFITHS Griffiths won't say how much control the family surrendered. When asked how the shares are divided between his family and McCaw, Griffiths replied: "Percentage-wise? That's private. Nice try." Orca Bay Sports and Entertain and, Winning Spirit, which is wholly owned by the tfOUt INTIITAINMINT if Griffiths couldn't raise More time the money from the .6 8 Canucks and is 13 per Less time 13.8 1 cent Side of limited partnerships, McCaw would step in. The NBA made it lied, tif yf.Vti The clear they were going Griffiths to support the project, sup()ort the arena, the basketball team to Vancouver.

But if we weren't bringing in partners, it was John and ment is or will soon be a federally registered limited partnership and details of the division of shares are not public. Please see ORCA, C2 ily Arthur and his sister, Emily formerly held a 70-per-cent interest in a numbered company that owned 87 percent of tin Canucks (the remaining 13 per cent was publicly held) and myself that would have to step to the plate, Gnf- tit lis said. More time 8.7 Less time 14.5 SOFTWARE DISTRIBUTION BROADCASTING Delay in Windows peeves Parizeau S. customs Commercial multi-language channel proposed by Rogers i mm yr More time 13.6 Less time 4.9 Tp Mmrican customs combat growing "grey market" software reselling. New boxes, warranties and registration cards were needed, leading to an eight-week delay, the company said.

Microsoft earlier planned to sell the same version of Windows 95 in Quebec ad France. Microsoft's products are more expensive in France than in North America, which led Euroeans to purchase software in Canada and pushed some distributors to sell Canadian products illegally overseas, said Pierre Chadi, Microsoft's Quebec regioiud manager. An "explosion" in Quebec grey market sales of Windows 95 created a need for French Canadian packaging and registration cards in late July, Chadi said. Parizeau, though, said Microsoft's move was made to protect the interest of Windows 95 distributors in France. He said he may discuss the matter with Microsoft.

Bloomberg QUEBEC The lYovince of Que bee is insulted by Microsoft's decision to delay the release of a French Canadian version of Windows 5. "We want to be there for the revolution," said an aide to Quebec IVe-niier Jacques Parizeau. "We want to be able to do it in our language." Quebec consumers won't be able to buy the long-awaited PC software in French until Nov. 1, more than two months after Microsoft unveils its new operating system Aug. 24.

Corporate customers in Quebec, including companies with more than 25 computers, will get French software this week. That's unacceptable," said Marie Josee Gagnon, a Parizeau representative. "Everybody will be able to get a copy, but not Quebecers." Microsoft on Aug. 1 said it decided to issue a strictly French Canadian version of Windows 95 to Source: North American Customs Survey Report posals as it often does when it gets a major application Viner said he exacts several rival bids. The approval process could take as long as two years, and it would take about a year to get on the air after that.

Rogers has a deal with Fairchild Holdings, conditional on CRTC approval, to buy Talentvision for $4.1 million. It would invest another $25 million over five years in studio, staff, training and programming. The station would broadcast on I'HF channel 32. so people who don't buy cable will be able to receive it in Greater Vancouver and parts of Vancouver Ishuid. It would also be added lo basic cable liner ups at no extra charge.

CFMV would produce 30 hours Please see CFMV, C2 WILLIAM BOEI Sun Business Reporter South Asian languages and Chinese take the lion's share of programming promised for a new Vancouver multicultural TV station. Rogers Broadcasting, a sister company to Rogers Cablesystems, applied Tuesday to the Canadian Radio-television and Telecommunications Commission for licensing for the station, which would have the call letters CFMV. If it gets CRTC approval. Rogers Broadcasting will buy Talentvision now a Chinese-language cable channel and convert it into a commercial station serving as many as 18 cultural groups in 15 languages, president Anthony Viner told a Vancouver news conference. If the CRTC calls for other pro I Mi -4 PAMELA DtHNKBSoutham News Graphics INSIDE WEST COAST SALMON appear headed towards the same disastrous end as the East Coast cod.

David Bond's Bulletin C2 INFLATION EASES for the second straight month and consumer spending continues to climb. C3 STOCK LISTINGS C4-6 JACQUES PARIZEAU: claims France's distributors protected Quebec distributors aren't surprised. French-Canadian customers must simply wait, they said. ORD EX SEDAN BRAND JQC NEW ZJD NEW CAN YOU PUT A PRICE TAG ON SAFETY? I WMV I Only a '95 Volvo 850 sedan offers you optional side impact airrjngs, a patented side impact protection system (SIPS), as well as standard dual air bags, ABS brakes and front wheel drive. SAFETY ON SALE FROM Not fiirtlv Cornw ol Knight 81.

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