OTCPK:TMBMF - Post by User
Post by
modulexon Jun 20, 2015 5:41pm
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Post# 23852319
TEMBEC IS ON ITS WAY TO A MERGER OR TAKEOVER
TEMBEC IS ON ITS WAY TO A MERGER OR TAKEOVERMontreal - LA PRESSE newspaper June 20, 2015 refers to an article forecasting a Resolute Forest Products & Tembec merger. One has no doubt to believe that Tembec (TMB-Toronto) share price being so hammered down at barely $2.00 is a sign that a transaction of some kind will finally happen. Should RFP be taking up TMB, it will be at a cheap price, likely in cash and shares, just alike the 2012 transaction by which RFP bought Fibrek Inc. (FBK-Toronto) in cash and shares. La PRESSE newspaper points out that the recent approximate 20% stake bought by Fairfax Financial Holdings Inc. in Tembec at a cost of $2.25/share or $45M has been tendered by Tembec institutional shareholder Wayzata Partners, based in Minnesota, USA. Why did Fairfax Financial Holdings Inc. has struck a deal with Wayzata Partners at $2.25/share? Is it because Wayzata Partners bought the shares below $2.25/share, perhaps several years ago and wanted to get out of Tembec by all means (at a somewhat profit, taking into account the US-CAN dollar current value) or because Fairfax Financial Holdings Inc. offered Wayzata Partners a favour of some kind to which Wayzata Partners agreed to. The Fibrek transaction in 2012 also had some backroom dealings in which RFP and Fairfax Financial Holdings Inc. entertained private talks before coming up nastily with the hostile takeover bid of Fibrek Inc. Tembec share trading now below $2.25, the price paid by Fairfax Financial Holdings Inc. is obviously an indication to a looming transaction. The best way that Tembec could rebuke a RFP-TMB insignificant merger is by working out a merger with Fortress Papers (FTP-Toronto). FTP has a small float of shares, TMB has 100M shares outstanding. FTP share price is at approximately $4.00. It would definitely make more sense for TBM shareholders to take part in this type of merger.