Told members to buy stock in issue of Oct. 30

Readers of the Internet Wealth Builder newsletter were advised to buy shares in Mackenzie Financial Corporation (MKF) at $18.60 just one week before C.I. Fund Management launched a hostile take-over bid for the company.

The advice was given in the Oct. 30 edition of the weekly e-mail newsletter by editor Gordon Pape.

Mackenzie shares closed at $28.25 on Nov. 6, after the C.I. offer was made public earlier in the day. In a special bulletin sent out after the market close on that date, Mr. Pape advised members to hold their positions in anticipation of the possible emergence of another offer and a bidding war for the prized mutual fund company.

Mackenzie Financial has been on the IWB's Recommended List for some time at an originally recommended price of $17.75, but Mr. Pape said on Oct. 30 that the price at that time looked especially attractive and that the company was a take-over prospect.

The specific C.I. bid had not been expected and is the first hostile take-over attempt in the Canadian funds industry. However, because of the widely-held nature of Mackenzie stock, it was generally believed that someone would eventually make a run at the company.

C.I. is expected to give shareholders until Dec. 8 to tender, so the next month could produce a lot of action, Mr. Pape said in his Monday bulletin.