Canada: Molson Inc. shares jumped suddenly in late trading on January 27, just ahead of Friday's shareholder vote on its controversial merger with Adolph Coors Co. Investors were speculating the $4 billion deal to create the world's fifth largest brewery would get the go-ahead after months of intense negotiations between Canada's largest brewery and its shareholders, observers said.

Molson shares gained nearly 3 per cent, or $1.09, to close at $38.85 on the Toronto Stock Exchange in the final hour and a half of trading yesterday. Volume was moderate at 4 million shares. "Somebody's betting the deal will be approved," said Bill Chisholm, an analyst with Dundee Securities Inc., who has been watching the drama for months. The company's stock had been holding steady all week amid speculation the vote was too close to call.

The agency that monitors stock market activity for signs of news leaks and other unfair practices said it wasn't concerned about Molson's trading pattern yesterday. "In our experience, when you see a rise the day before a vote, that's generally speculation," said market regulation services spokesperson Doug Maybee. "We monitored it but saw no reason to contact the company."

30 January, 2005