Catalyst looks over bid
August 22, 2006 By Pulp & Paper Canada
Catalyst Paper has adopted a limited duration shareholder rights plan to make time to assess and respond to the uns…
Catalyst Paper has adopted a limited duration shareholder rights plan to make time to assess and respond to the unsolicited offer made by Third Avenue Management. Third Avenue is seeking to buy up to 39 million shares of Catalyst at a price of $3.30 per share. If the bid goes through, Third Avenue would hold 38% of the company.
Catalyst’s board of directors has formed a committee to look into the proposal, and will be making recommendations to shareholders.
Tom Chambers, chairman of the newly-formed committee said, “We believe the adoption of a limited duration shareholder rights plan is both prudent and necessary to provide us with the time to properly assess Third Avenue’s offerUntil we are in a position to provide more informed views to our shareholders about Third Avenue’s bid, we are advising that shareholders take no action in respect of the offer.”
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