Not unexpected.... the BDR strikes again.
MONTREAL, April 11, 2012 /CNW Telbec/ - Fibrek Inc. ("Fibrek" or the "Company") confirmed today that the Bureau de décision et de révision (Québec) (the "BDR"), the administrative tribunal with statutory jurisdiction in securities law and regulatory matters in the Province of Québec, issued an order to cease trade Fibrek's new shareholder rights plan (the "Rights Plan"), adopted on April 11, 2012, effective immediately. Fibrek intends to appeal the BDR's decision before the Court of Québec as soon as possible.
As previously disclosed, Fibrek announced today that Mercer International Inc. ("Mercer") has increased the consideration offered to Fibrek shareholders under its offer to purchase all of the issued and outstanding common shares of Fibrek from $1.30 to $1.40 (the "Increased Mercer Offer"), which represents a 40% premium over the unsolicited insider bid made by AbitibiBowater Inc. (carrying on business as Resolute Forest Products) ("Abitibi").
Fibrek also announced today that the Supreme Court of Canada has granted Fibrek's request to expedite the application for permission to appeal of the Québec Court of Appeal's decision to maintain the cease trade order of the proposed private placement (the "Private Placement") of 32,320,000 special warrants to purchase common shares of Fibrek to Mercer. The Board of Directors strongly recommends that shareholders defer making any decision until the Supreme Court of Canada's decision with respect to the Private Placement is rendered, in order to benefit from the superior $1.40 offer from Mercer.
ABH also announced that the took up 46.8% of FBK stock and is now the controlling shareholder of Fibrek. Steelhead did not tender their shares preferring to tender to the much higher offer from Mercer or will they simple continue to collude with ABH and vote to replace the board and management of FBK