Vote Yes, say advisory firms
July 17, 2007 By Pulp & Paper Canada
Greenville, SC–Bowater shareholders have been advised to vote in favour of the proposed merger with Abitibi-Consol…
Greenville, SC–Bowater shareholders have been advised to vote in favour of the proposed merger with Abitibi-Consolidated.
Advisory firms Institutional Shareholder Services and Glass Lewis & Co. additionally recommended that Abitibi shareholders cast their votes the same way.
Based on our review of the terms of the transaction, in particular the strategic rationale and positive market reaction, we believe that the merger agreement warrants shareholder support, ISS stated.
Glass Lewis commented in a similar vein, saying, given the rationale of consolidation in the companies industry, we believe the agreement is in the interests of shareholders. The combined company will become the third largest paper and forest product company in North America and the resulting scale will afford AbitibiBowater substantial costs savings.
Bowater is also encouraging its members to vote for the consolidation. President and CEO David J. Paterson said on behalf of the entire Bowater board of directors, I urge all Bowater stockholders to vote FOR the proposed merger. Together, Bowater and Abitibi-Consolidated will be a financially stronger company that can more effectively compete and deliver significant benefits to our stakeholders.
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