Corporation subsidiary to create the world's biggest Aframax tanker company.

Both the Bona and Teekay boards recommended the move, according to a statement released to the media.

Under the terms of the agreement Bona shareholders will have the right to elect to receive either 0.485 Teekay shares or a cash consideration of $7 for each share. Based on the closing price of the Teekay shares of $15.1875 on March 26, the transaction values the issued share capital of Bona at around $136 million.

The cash consideration represents a premium of 50.2 percent over Bona's closing share price on March 26 of $4.66.

News of the merger came on the tail of depressed first quarter results for Bona Shipholding.

The company recorded an operating profit before depreciation and amortisation of $11.5 million, down 27 percent on 1998 results for the same period.

Operating profit was $4.3 million compared to $7.8 million last year.

Net profit dropped from $5 million in 1998's first quarter to $1 million this year.

Cash flow from operations for the first quarter was $7.6 million, down from $12.5 million for the same period last year.

BUSINESS BUC