OTCPK:TMBMF - Post by User
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modulexon Aug 28, 2015 4:39pm
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TEMBEC'S MANAGEMENT KEEPS MUM ON STOCK CRASH
TEMBEC'S MANAGEMENT KEEPS MUM ON STOCK CRASHMitch Dumas is wondering why i did contacted former CEO Frank Dottori about TMB'S latest stock crash? August 22, 2015 Good day Mr. Dottori: I hope you are doing well "health-wise", the most important thing in life. I am writing as you have probably heard that TEMBEC has collapsed to a "penny-stock" status this week. The stock traded at $0.90. It was above $3.00 at the start of 2015. Fairfax Financial Holdings Limited bought approximately 20M shares of Tembec at $2.25 on June 12, 2015 from U.S.A. institutional investor Wayzata Investment Partners LLC. Fairfax is trying to force an hostile takeover bid at Tembec, by having lock-up agreements with other major shareholders, just like they did with Fibrek Inc. in 2012, on behalf of Resolute Forest Products (RFP-Toronto). RFP offered $1.00/share and RFP shares to FBK shareholders. Mercer International was willing to buy Fibrek at $1.30/share, an all-cash offer, but RFP ended up being tendered the required number of FBK shares given Fairfax lock-up agreements, namely with Steelhead Partners LLC, Oaktree Capital Management LLC and Dala Street LLC (Pabrai). It is very unfortunate to see TEMBEC going away for many long-time shareholders, but the company has come to a point that it can no longer handle its future by itself, having too many drawbacks (poor liquidities, missing deadlines, financial targets, etc...). I dont expect a case of bankruptcy to happen but not a great takeover offer either. Best regards. Tembec Inc. (minority shareholder) 23/08/2015 Why did you address this to Mr Dottori? Michel.Dumas@tembec.com My reply to Mitch Dumas on August 24, 2015 as follows: August 24, 2015 Mr. Dumas : As a shareholder, I am seriously preoccupied by Tembec's fate. There is no reason whatsoever why the company should be trading at a penny-stock level and for Tembec's management not to come out and explain WHY? I must sadly express that I have experienced the same betrayal behaviour that Fairfax is showing with Tembec in the case of Fibrek Inc. in 2012. I have shared my comments and my Dottori e-mail with Globe and Mail Bertrand Marotte.