Strategic Value Corporation (SVC) confirmed today that Investec Group Limited proposed a $3.30 per share takeover bid on June 8, 1999 for all of the Class A Common shares of SVC, conditional on the agreement of Mark S. Bonham, chairman and ceo of SVC, who is a 41% voting shareholder.

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Bonham advised SVC's Board of Directors, at the time of Investec's takeover proposal, that he would not tender his shares to this takeover bid.

Investec currently holds about 25% of all shares of SVC, but only 10% are voting shares.

SVC believes that the proposed bid would deprive shareholders of the greater long-term value that will be created by completing the integration of the O'Donnell Investment Management acquisition, which closed on June 2, 1999. As a result, SVC does not consider the proposed offer to be in the best interests of shareholders.

"We are still in the process of integrating the two companies," said a company spokesperson, "The sales forces are being consolidated,and the systems integrated --the process probably won't be completed until after Y2K. We acquired O'Donnell both for the assets under management and the O'Donnell brand name, and we want to see the fruits of our labors."

In addition, SVC says it is "currently considering various alternative equity opportunities and strategic alliances that will simultaneously reduce SVC's debt exposure while further enhancing shareholder value, over the long term."

"I am committed to enhancing value for the benefit of all shareholders," said Bonham. "The Investec proposal will deprive shareholders of the opportunity to achieve significant long-term upside."

SVC, through its wholly-owned operating subsidiaries manages the Strategic Value Series of Funds and the O'Donnell Group of Funds, which have a combined total of approximately $3.3 billion in 30 public mutual funds and one private fund. 

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