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MCCAIN BROTHER OWNS MAPLE LEAF

MONTREAL (FNS) -- Wallace McCain, ousted co-chief executive officer of McCain Foods, which he founded with his brother, Harrison McCain, in 1956, is the new owner of Toronto-based Maple Leaf Foods.of a $2.16 billion ($3 billion Canadian) meat and milling empire with 11,000 employees that rivals his former firm in sales, but few competing products. McCain Foods specializes in frozen juices and frozen

MONTREAL (FNS) -- Wallace McCain, ousted co-chief executive officer of McCain Foods, which he founded with his brother, Harrison McCain, in 1956, is the new owner of Toronto-based Maple Leaf Foods.

of a $2.16 billion ($3 billion Canadian) meat and milling empire with 11,000 employees that rivals his former firm in sales, but few competing products. McCain Foods specializes in frozen juices and frozen foods, particularly frozen french fries and pizza.

Wallace McCain was kicked out of the family business in Florenceville, New Brunswick, last year by Harrison over a protracted succession battle. Wallace still sits on the McCain board, but his son, Michael, was fired as president of Chicago-based McCain USA by Harrison.

Both Michael and brother Scott will join Maple Leaf in unspecified management positions.

Former McCain executive and Wallace ally Archie McLean will become president and CEO. The future of Brent Ballantyne, who currently holds those titles, is still uncertain.

The successful bid by McCain puts an end to speculation that other bidders would emerge to challenge his offer. A source close to the negotiations said talks with other parties continued right up to the last minute.

British-based Hillsdown Holdings, which held a 56% interest in Maple Leaf, had said from the beginning that it would accept the McCain offer if nothing better surfaced.

Both McCain and the Ontario Teachers Pension Plan Board kicked in about $110 million ($150 million Canadian) each, with the remainder of the sale being financed through long-term debt and other obligations.

Most analysts said they don't expect McCain to make any dramatic changes in the company over the next few months, but said he'll likely concentrate on the meat and grocery products part of the business and possibly sell the milling and baking operations down the road.