GREY:FBKZF - Post by User
Post by
p.yuon Dec 08, 2011 11:21pm
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Post# 19306075
FBK - Abusive offer by major shareholder
FBK - Abusive offer by major shareholderThe bid for FBK is nothing more than an oppression of shareholder by the companies controlling shareholder. Fairfax happens to control both Abitibi/Resolute and FBK. Abitibi's future is in doubt as ABH's markets erode, they are simply making an offer for FBK to help diversify their business and grab the company at a ridiculous valuation.
Can't really blame them for trying, the problem is they are acting in concert with two other shareholders of FBK and now control 46% of FBK. This deal needs to be scrutinized by the OSC to insure minority shareholders are not being oppressed by their controlling shareholder, Fairfax who may be acting in concert with two other large shareholder/followers of Watsa.
Surely there is a provision within the securities laws to protect minority shareholders from an abusive offer from its controlling shareholder. Watsa knows this offer is well below fair value and if he were on the other side of the table, he would not stand for it. Since he is conflicted, he and his two fellow friends/followers should not be allowed to vote. How sad it is if he should prevail in this takeover.
Where are the regulators. Is there a white night willing to step up and force Resolute to pay up... Oops, I mean Abitibi...oops I mean Fairfax....oops, I mean Watsa. Where did he come up with that name...Fair...fax. Fair, not a chance, opportunistic and abusive, absolutely.