RONA inc. Cumulative Floating Rate Series 7 Class T.RON.PR.B

RE: RE: Niblock's morning statement

[vessob]

I agree with your assessment. As discussed in the call: 

• Lowes has estimated the Canadian market to be $40 Billion
• Canada has a desirable high home ownership rate of 70% 
• Lowes stated goal is to be #1 or #2 in Canada, with a goal of 100 stores
• Canada is a stable market that will give Lowes the scale they seek
• Deploying Lowes new technology within Rona will immediate bottom line results
• A hostile takeover of Rona is faster and more preferable to slow organic growth
• 80 big box stores plus over 600 smaller stores (almost for free) right out of the hoper will have impact
• To recoup some capital, selloff some stores and groups that don't fit (like Noble Trade)

Regarding government opposition, Canada will be hardpressed to say no to a LOWES takeover, regardless of what the Premier of Quebec  has publically said. RONA is not a strategic asset .

In addition, RONA shareholders are in a much humbler frame of mind than when the first offer was made. A $15 offer today will be welcomed with open arms.

But of course, this could all be wishful thinking ....