Mercer still not out of he game yet The Fibrek takeover is still ongoing despite the fact that ABH has picked up 48.8% of the shares. The battle continues on and Mercer is waiting to see if ABH can get over 50%. The king maker is still Steelhead Partners who have 4.85% which, if tendered, will give ABH control. Steelhead is now in a bind, do they tender and show the regulators they were always acting in concert with ABH. Or, do they tender to Mercer and pocket a quick 40%.
The future of pulp and paper is not bright, and either is ABH's future. Steelhead must realize they own a dog in ABH and it would be a tough sell to their clients justifying not taking the 40% premium. I am not sure Mercer will get the 50% but I am not sure ABH will get it either. There is little chance ABH will get the 66 2/3 required to squeeze out the Fibrek minority. Fibrek has traded over 11 M shares this past week and it is under accumulation by someone, is it ABH or there agents acting in concert? Not likely, they could not be that stupid given the regulatory scutiny they are under. It must be arbs looking to push the buttons that will prevent ABH from getting 66 2/3 without sweetening the offer. They will play hard ball with the HARD Head who runs ABH.
Lets just wait and see if the AMF steps in to investigate the allegations of acting in concert and breach of public trust. The OSC has clearly dropped the ball on this matter and one can only hope the AMF launches a formal investigation. We need some shareholders/arbs to press the matter. It just looks like the hedgies/arbs are setting up for a battle and hopefully this will lead to a full scale investigation to expose the joint actors once and for all. The access to inside information and the use of that information will hopefully come to light and some major players will be called to account for their reprehensible behavior. Get ABH, fairfax, oakmont, steelhead and Prem Watsa on the stand under oath and we will get the truth.
How does the AMF argue on behalf of Fibrek and then get over ruled by the BDR. The BDR is a disgrace to capital market and should be called to account for their stupidity. What purpose does it serve?