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#Written by David Tam, 1997.           #       
#davidkftam@netscape.net Copyright 1999#
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David Tam
Wednesday, January 22, 1996.

                             BUSINESS PRESS REVIEW
                             =====================
Howlett, Karen. "Shareholder misled us, firm says", The Globe and Mail.
Tuesday, January 21, 1997. B10.                     ------------------

    Lenard Fiessel, a major shareholder of Chandeleur Bay Production Co. Ltd.,
failed to disclose the fact that certain share options of the company were
exercised.  In fact, Mr. Fiessel misled Chandeleur Bay into believing that
these options were cancelled.  The option, which involved 3 million shares of
Chandeleur, was a private option agreement between Mr. Fiessel and two
directors that offered the purchase of shares at 5 cents each.  It turned out
that nearly half of those shares were exercised under the option.

    By misleading Chandeleur Bay into believing the share options were
cancelled, the financial statements of the company must have been severely
distorted.  As we have learned in our lectures, financial information such as
fully diluted earnings per share account for stock options.  Because Chandeleur
Bay believed the 3 million share stock option was cancelled, it provided a
major boast to the share value.  Before the incident was reported, the effects
these action could be clearly seen.  Chandeleur Bay's shares ranked was one of
the top-five volume traders.  The share value even managed to double in value
when it became the highest traded volume on the Vancouver Stock Exchange.