Fibrek Inc FBKZF

RE: FBK - Abusive offer by major shareholder

[AIGswap]

The PR only explicitly mentions 66 2/3 minimum tender, implying that they believe this is not an "Insider bid".  I would be shocked if this didn't require the "minority of majority" tender clause due to the fact that Fairfax is clearly a related party under MI 61-101 (given that they are controlling shareholders of both entities and stand to receive a substantially larger benefit due to their ~$330mm in ABH holdings vs only $33mm in FBK).

Given my assumption that they need 48.2mm shares to tender under the "majority of minority" clause, excluding Fairfax, which means they would need 22.35 shares from monority shareholders excluding Pabrai and Oakmont to get this tender done.

What I think will happen is that FBK board realizes they are stuck, and will end up negotiating a friendly deal with ABH with a small bump (~
.10) to show their shareholders that they got a better deal.  These hard lock-ups would scare off any potential white knight...