In an apparent attempt to show neutrality, Steelheads press release on Saturday night stated:
" it has reserved its decision whether or not to tender shares of Fibrek, Inc. ("Fibrek") held by Steelhead Navigator Master, L.P. ("Steelhead Navigator") to the offer made by AbitibiBowater, Inc. doing business as Resolute Forest Products ("Resolute") until the minimum tender condition contained in the Resolute offer (as it may be amended) has been met. Steelhead has not yet made any decision or commitment to tender Steelhead Navigator's Fibrek shares to the Resolute offer should such condition be satisfied. Steelhead has not currently tendered Steelhead Navigator's shares to either the Resolute offer or to the competing offer of Mercer International Inc. ("Mercer")".
Interesting how they inserted the "as it may be amended". Well, surprise, surprise, ABH amended and extended the offer for Fibrek lowering the min required tender to 45.7% which happens to be the number of shares they have under hard lock-up.
What next? Now Steelhead can tender their shares to ABH (which was their intention from the beginning) because they met the min tender requirement. Even though MERCER is willing to pay them a 30% premium or an extra $2M for their hares. What a coincidence that it just worked out for both parties. Of course Steelhead had no idea ABH would lower their min tender and they are most certainly not working together or in concert with the other parties to the transaction. It was just pure coincidence.
Well its a darn good thing the OSC washed their hands of this political hot potato. Although they could have intervened, they came to the conclusion that the flip floppers in Quebec actually understand Ontario's Securities laws.
ABH will stop at nothing to get this strategic asset (Fibrek) at the lowest price possible. Who cares about minority shareholders, they are an annoyance.
At what point does Chairman Prem step up and fire his Resolute CEO? Did we see a new 52 week low on ABH in Canada today? Looks like someone is starting to figure out the CEO is weak.
AIGSAWP - any thoughts from here?