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Resolute extends offer for Fibrek, controls 48.8% of shares

The protracted takeover battle for Quebec-based pulp producer Fibrek continues, following a decision on the matter by the Supreme Court and another extension of Resolute Forest Products’ offer. Resolute announced on April 23 that it holds…

The protracted takeover battle for Quebec-based pulp producer Fibrek continues, following a decision on the matter by the Supreme Court and another extension of Resolute Forest Products’ offer. Resolute announced on April 23 that it holds about 48.8% of the outstanding Fibrek shares, and extended its offer to May 4.

Earlier this month, the Supreme Court refused to allow Fibrek to appeal a Quebec court’s decision to maintain a cease trade order of the proposed private placement of special warrants that formed part of the Mercer International friendly offer for Fibrek shares. As a result of the Supreme Court decision, Fibrek and Mercer have announced the private placement will not occur.

Fibrek’s Board of Directors continues to recommend that shareholders tender to the superior $1.40 offer made by Mercer International Inc., which will be open until April 27. As of April 11, almost 25% of Fibrek shares had already been tendered to Mercer’s superior offer, representing approximately half of Fibrek’s minority shareholders