Fibrek announced yesterday that its Board of Directors has unanimously rejected the unsolicited insider bid of Resolute Forest Products.
In response to the insider bid, the Board has taken several steps to ensure that the interests of its shareholders and other stakeholders are fully protected and that they are treated fairly. The Board has:
1. Sought an opinion as to the fairness of the Insider Bid from its financial advisor, TD Securities, who concluded that the Insider Bid was inadequate from a financial point of view to Fibrek's shareholders, as more fully set out below;
2. Unanimously rejected the Insider Bid;
3. Adopted a shareholder rights plan;
4. Appointed an independent committee for the purpose of retaining an independent valuator and supervising the preparation of a formal valuation of Fibrek’s common shares; and
5. Undertook a review of strategic alternatives.
"We have concerns with Abitibi’s unsolicited insider bid, which does not provide our shareholders with the benefit of a formal valuation by an independent valuator. A formal valuation would provide shareholders with a clear value range for the common shares of Fibrek. Abitibi is unfortunately relying on a technical exemption from the legal requirement to obtain such a valuation on the basis, as they claim, that they do not have material information concerning Fibrek’s business,” stated Hubert T. Lacroix, Chairman of the Board of Fibrek.
