Well it appears as though Fibrek has taken off the gloves. Have a look at the Info Circular just posted on Sedar Dec 30th, 2011. What an interesting read this is for all interested parties.
Fibrek provided a timeline of events leading upto the offer from Resolute/Fairfax. All I can say is that it appears as though Fairfax was well aware of Fibrek's plans to acquire/merge with an undisclosed third party that would provide for vertical integration and a reduction in risk. They also outlined their discussions from a year ago in which they discussed a JV with Abitibi as well. NOTE : Fairfax is a controlling shareholder in Abitibi and has a lot more at stake than meets the eye.
After reading the info circular, it is very clear to me that Fairfax is an insider, was privy to more information than what was ever disclosed publicly and since they now control Abitibi/Resolute. it would be hard to imagine that they did not ever discuss Fibrek or share information. For Fairfax and Prem Watsa to now enter into a restrictive lockup agreement and no ability to tender to a higher offer speaks volumes as to their intentions. They know they are disadvantaging minority shareholder with their low bid and they certainly had more insight than we otherwise realized.
The Abitibi/Resolute offer is an embarrassment and an opportunistic abuse of minority shareholders rights. It violates the "public interest" clause and the OSC must act quickly to require a fairness opinion and force the controlling insider to drop the bid or pay up. They must also approve the poison pill to prevent Fairfax from scooping the company.
If a white knight were to appear, and offer a substantial premium would they (Fairfax and the wannabe) tender to the offer? Clearly they would if they actually believed it was only worth $1.00, which is what they have agreed to with their lockup. If a white knight does not appear given the lockup restrictions, the company should attempt to buyout their stake for $1.20 and call their bluff.
I use to have a very high opinion of Prem Watsa and Fairfax.... that is no longer the case and the press needs to step up the coverage to expose this abuse for what it is. Minority shareholder abuse by a controlling shareholder and abuse of the Public Trust.
As for Pabrai and Oakmont, are you kidding me. Tendering at $1. Now that is an abuse of fiduciary responsibility to your clients unless you actually believe it is a fair price. Do you think it is fair. Or are you just following your buddy Prem?