1 John Labatt Ltd. said it plans a private placement of 150 million Canadian dollars (US$127.5 million) in preferred shares, to be completed around Nov. 1.
2 Proceeds will be used to reduce short-term debt at the beer and food concern, said Robert Vaux, vice president, finance.
3 The preferred shares will carry a floating annual dividend equal to 72% of the 30-day bankers' acceptance rate until Dec. 31, 1994.
4 Thereafter, the rate will be renegotiated.
5 Mr. Vaux said that if no agreement is reached, other buyers will be sought by bid or auction.
6 The shares are redeemable after the end of 1994.
7 Mr. Vaux said the share issue is part of a strategy to strengthen Labatt's balance sheet in anticipation of acquisitions to be made during the next 12 to 18 months.
8 Labatt's has no takeover bids outstanding currently, he said.
9 Lead underwriter to the issue is Toronto Dominion Securities Inc.

John Labatt Ltd . said it plans a private placement of 150 million Canadian dollars ( US $ 127 . 5 million ) in preferred shares , to be completed around Nov . 1 .
preferred shares ,
What are preferred shares?