TAKEOVER BATTLE FOR DOME PETROLEUM BEGINS
  A takeover battle began today for
  debt-burdened Dome Petroleum Ltd &lt;DMP.MO> as TransCanada
  PipeLines Ltd &lt;TRP.TO> announced a 4.3 billion dlr offer and
  Dome said it is continuing talks with other possible buyers.
      Companies mentioned in market speculation as potential
  buyers for Dome include Imperial Oil Ltd &lt;IMO.A> which is 70
  pct owned by Exxon Corp &lt;XON.N>, &lt;PanCanadian Petroleum Ltd>
  which is 87 pct owned by the conglomerate Canadian Pacific Ltd
  &lt;CP.N> and British Petroleum Co Plc &lt;BP.L>.
      Along with the TransCanada offer, Dome has had another
  proposal from "a substantial company" and discussions with a
  third company which could lead to an offer, Dome said in a
  statement.
      The statement confirmed Dome received TransCanada's bid,
  but did not identify the companies involved in talks.
      TransCanada, Canada's largest natural gas pipeline
  operator, said it is offering Dome a package of cash, common
  and preferred shares, and shares in a new subsidiary which
  would own and operate Dome's assets. TransCanada said the offer
  is to Dome management, not to shareholders.
      Dome has massive oil and gas landholdings in Canada,
  totalling 36.1 mln acres of which 7.4 mln have been developed.
  It also has tax credits worth about 2.5 billion dlrs.
      Dome's statement said the TransCanada announcement "violated
  the terms and spirit of a confidentiality agreement entered
  into with prospective purchasers" and was apparently timed to
  prevent Dome from considering other proposals.
      It said the TransCanada bid "seems to require favourable and
  substantial taxation concessions from the federal and
  provincial governments." But Dome added that its management and
  financial advisers will evaluate all proposals.
      TransCanada chief financial officer H. Neil Nichols said he
  was surprised at the vehemence of Dome's statement and denied
  that TransCanada was trying to usurp other bids. "I find (Dome's
  statement) very bothersome. Once the board made the decision to
  authorise the proposal, it had a legal obligation to announce
  it," he said. Nichols said he did not know the identity of the
  other bidders, or the terms of other offers.
      Dome common shares closed at 1.13 dlrs on Friday on the
  Toronto Stock Exchange. The preferred class A stock closed at
  5.00 dlrs. Common stock traded as high as 25.00 dlrs in 1981.
  

