It has been clear since Resolute made its offer to purchase Fibrek that Resoulte and Fairfax have been working behind the scenes to thwart any and all attempts by Fibrek mngt to create shareholder value. They were privy to inside information with regards to Fibrek's plans to acquire or merge with another company and they moved quickly to stop them from doing once they were told by Fibrek mngt they were going to move forward with the acquisition. Resolute jumps in once they get Fairfax approval and make a hostile offer at a price well below fair value. It is clear that Fairfax is a controlling shareholder of FBK and I would argue based on their access to inside information as outlined on the Fibrek information circular, they should have been deemed an insider subject to rules pertaining to takeovers.
How can regulators possibly rule otherwise? How can regulators not see that Fairfax has violated the public interest clause by requesting a cease trade of the superior Mercer offer? What kind of fiduciary (Fairfax, Steelhead, Pabrai etc.) enters into a hard lock up agreement and gives away their rights to accept a superior offer? If I were an investor in any of the funds managed by these so called Investment companies, I would be long gone by now. They not only are abusing the interest of Fibrek minority shareholders, they are abusing there own clients and clearly have alterior motives. Shameful behavior on all accounts and worthy of further investigation by regulators and the press.
There is no way that regulators can cease trade a superior offer, even the mightly influential Fairax chairman Prem Watsa cannot be that powerful. There is just no possible way a regulator with integrity could rule in favour of a cease trade.
Think about it for a minute. Fairfax says FBK is worth only $1.00. They are so convinced of its value they enter into a hard lock up, suggesting they are either brain dead stupid or have alterior motives which run counter to the interest of minority shareholders. If they had any degree of intelligence, they would tender to the superior offer and take the proceeds and buy shares in resolute. Why are they fighting this superior offer, it should be clear to most unbiased observers, they are trying to scoop a superior company to prop up a sinking ship in which Fairfax has a much larger position. End of story, full stop.
Shame of you Fairfax...I now understand why the shorts went after you years ago...they will be back now that your insurance companies are bleeding red ink. You deserve your fate and your true motives are now well exposed....