Tambourah Metals Ord Shs T.TMB.W

RE:REPLY TO LUMBERFEVERLONG - TEMBEC STOCK CRASH

[Lumberfeverlong]

I doubt Lopez sold any of his shares nor would that influence either Fairfax or Steelhead's next move.  Last time I checked Fairfax and Steelhead were Resolute's largest shareholders.  Their economic interest in Resolute dwarfs Fairfax's investment in Tembec meaning if they believe that Tembec's assets will enhance their investment in Resolute, they will act seemingly irrationally with their Tembec investment.  By way of example, Fairfax entered into a hard lock-up agreement with Resolute to sell their Fibrek shares for $1.00 per share.  The offer was for a combination of cash and Resolute shares.  By the time Resolute completed the take-over the value of the bid was significantly lower than $1.00 per share. Moreover, Fairfax refused to sell their Fibrek interest to Resolute just months prior to the hostile bid for a value substantially higer than $1.00 per share. There was no reason for Fairfax to behave that way other than to ensure Resolute acquired assets that would enhance its value.  Similarly, Steelhead entered into the market after the hostile bid was announced to purchase Fibrek shares at or above the take-over bid price when the lock-up agreements essentially ensured no higher bid would merge and succeed.  Mercer's $1.40 per share offer was blocked via litigation before the AMF.

I think Fairfax would likely be willing to take a loss on its Tembec investment to ensure Resolute acquires Tembec if they believe that Resolute will be be a more viable investment long term.  Lopez, or Mr. Lopez as you prefer referring to him,  will have no impact on that outcome.