Opportunities exist for mergers and acquisitions in Canada
January 20, 2008 By Pulp & Paper Canada
Los Angeles, CA — Despite the state of the forestry market this year, opportunities for mergers and acquisitions w…
Los Angeles, CA — Despite the state of the forestry market this year, opportunities for mergers and acquisitions will be plentiful, according to a Financial Post article on the ForestWeb news service.
Sino-Forest, Catalyst Paper and TimberWest Forest topped the list of buys for 2008 at Dundee Securities, and analyst Richard Kelertas top sells were Fraser Papers, Tembec and AbitibiBowater.
Kelertas said the current picks favoured timber/log and private timberland since the markets were experiencing uncertainty and volatility. He added that with the steady and reliable returns provided by the development of these areas to investors over time, he was comfortable with the call.
Kelertas also warned that 2008 would see more capacity closures, consolidation, and branching out into bio-energy generation for net sales, cellulosic ethanol for biofuels, carbon sinks and carbon credit trading.
Investors should keep their eyes out for companies that can do all these as well as reducing their overall costs, he said.
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