After three months of legal and boardroom wrangling, Mercer International has withdrawn its friendly offer for pulp producer Fibrek. Mercer’s offer expired April 27. It had been conditional 50.1% of the Fibrek shares being tendered, a condition which was not met.
Resolute Forest Products also has an offer on the table for Fibrek shares. Richard Garneau, president and CEO of Resolute, said he expects Fibrek shareholders will tender their shares after Resolute secures at least half of the company’s shares, according to a Canadian Press report on May 1.
Garneau told Canadian Press, “The only offer on the table is our offer so I expect them to tender and expect we're going to integrate their operations in Resolute."
The Fibrek board had labeled the Resolute deal a hostile insider bid, and was supporting Mercer’s offer instead.
As of April 23, 48.8% of Fibrek shares had been tendered to Resolute’s offer.