Author Topic: Resolute Forest Products Commences Takeover bid of Fibrek  (Read 185190 times)

Provincial

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #740 on: May 07, 2015, 02:35:07 PM »
Fellow Board members: I used to write here occasionally with the "Quebec" handle but I have deleted my account. I wrote some posts on the Fibrek thread which I truly regret publishing. They were my personal toughts paraphrased on the moment, not thoroughly researched facts. I got carried away, did not look at it properly from both sides, used biased information, and realized too late that I was being stupid and could be hurting great reputations for no good reasons. I sincerely apologize.

In fact, my mind is changing on this Fibrek deal, as I get educated and if I review the transaction one step at a time. I hardly slept last night because thinking about this over and over. As <iv said, part of the consideration was RFP stock, and if you believe RFP was worth more than its stock price back then, it made perfect sense to favor that offer, even buying above 1.00. (If you value RFP say at 30 then you get that 1.50 for your Fibrek) Eventually I got to like RFP myself, bought more, and came out fine with this big, liquid stock. This is much inline with what Fairfax suggested could happen by tendering into the RFP offer.

Because I can make such mistakes writing, from now on I return to being a silent reader only.


Hielko

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #741 on: May 08, 2015, 02:46:39 AM »
If Steelhead would have thought that RFP was worth 30 they should have bought RFP shares instead of manipulating Fibrek.

benhacker

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #742 on: October 19, 2019, 04:29:58 PM »
Blast from the past... about 7 Fibrek threads, so I'm putting this here.

https://www.sec.gov/Archives/edgar/data/1393066/000119312519256452/d813207d8k.htm

Appraisal Rights process done in Canada for Fibrek investors... and the court agrees the acquisition prices was way below fair value:

Quote
ITEM 8.01   
OTHER EVENTS.

Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining outstanding shares of Fibrek Inc. (or “Fibrek”), following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Quebec Superior Court in Canada (the “Superior Court”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their shares under the Canada Business Corporations Act. For additional information, see Note 14 “Commitments and Contingencies” in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019.

On September 26, 2019, the Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at Cdn $1.99 per share, or Cdn $30.6 million in aggregate, plus interest and an additional indemnity, for a total currently estimated at approximately Cdn $43.9 million ($33 million, based on the exchange rate in effect on September 26, 2019) payable in cash. Of this total amount, Cdn $19.3 million ($15 million, based on the exchange rate in effect on September 26, 2019) is payable immediately. The payment of the remaining portion of the consideration and its timing will be dependent on the Company’s decision to appeal, as well as the outcome of such appeal, if any. The Company is reviewing the judgment and evaluating its options. As previously reported, we have accrued Cdn $14 million ($11 million, based on the exchange rate in effect on September 26, 2019) for the payment of the dissenting shareholders’ claims.

Pretty stunning, but most on this board felt it was a lowball at the time, and Fairfax/ABH (RFP)'s actions were super shady... and Fibrek board was ... something bad. :)

First appraisal rights situation I had followed loosely, so I wanted to follow up.
Ben Hacker
Beaverton, Oregon - USA

Cigarbutt

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #743 on: October 19, 2019, 09:17:31 PM »
Blast from the past... about 7 Fibrek threads, so I'm putting this here.

https://www.sec.gov/Archives/edgar/data/1393066/000119312519256452/d813207d8k.htm

Appraisal Rights process done in Canada for Fibrek investors... and the court agrees the acquisition prices was way below fair value:

Quote
ITEM 8.01   
OTHER EVENTS.

Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining outstanding shares of Fibrek Inc. (or “Fibrek”), following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Quebec Superior Court in Canada (the “Superior Court”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their shares under the Canada Business Corporations Act. For additional information, see Note 14 “Commitments and Contingencies” in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019.

On September 26, 2019, the Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at Cdn $1.99 per share, or Cdn $30.6 million in aggregate, plus interest and an additional indemnity, for a total currently estimated at approximately Cdn $43.9 million ($33 million, based on the exchange rate in effect on September 26, 2019) payable in cash. Of this total amount, Cdn $19.3 million ($15 million, based on the exchange rate in effect on September 26, 2019) is payable immediately. The payment of the remaining portion of the consideration and its timing will be dependent on the Company’s decision to appeal, as well as the outcome of such appeal, if any. The Company is reviewing the judgment and evaluating its options. As previously reported, we have accrued Cdn $14 million ($11 million, based on the exchange rate in effect on September 26, 2019) for the payment of the dissenting shareholders’ claims.

Pretty stunning, but most on this board felt it was a lowball at the time, and Fairfax/ABH (RFP)'s actions were super shady... and Fibrek board was ... something bad. :)

First appraisal rights situation I had followed loosely, so I wanted to follow up.
For those who had or still have an interest in the topic, here's the complete judgment:
https://www.canlii.org/en/qc/qccs/doc/2019/2019qccs4003/2019qccs4003.html?searchUrlHash=AAAAAQALZmlicmVrIDIwMTkAAAAAAQ&resultIndex=2

cwericb

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #744 on: October 29, 2019, 03:40:05 PM »
While some rejected my views at the time and tried to defend Fairfax, I, and a lot of other former Fibrek shareholders felt that Prem Watsa and Fairfax violated the company’s self imposed mandate of “Fair and friendly acquisitions” and committed an unethical and illegal takeover that profited Fairfax at the expense of Fibrek shareholders.

For those few who attempted to defend Fairfax, this judgement finally settles the matter. Many of us had little choice but to dump the stock at less than $1.00 while the courts have found that the actual value was at least double that amount.

I may still a Fairfax shareholder but I am under no illusions about how Fairfax operates.
Politicians and diapers must be changed often, and for the same reason. - Mark Twain

Gregmal

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #745 on: October 29, 2019, 04:10:58 PM »
So Fairfax tries to be as clever and cutthroat as say, a Brookfield; they just suck at it, among other things...

cwericb

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #746 on: October 29, 2019, 06:07:02 PM »
True.

The difference is that, according to Prem Watsa, the name Fairfax stands for “FAIR and FRIENDLY ACQUISITIONS”. The takeover of Fibrek was none of those.

Furthermore, it was proved in court that the acquisition was far from fair and that the takeover price should have been $1.99 per share , not $1.00. That is a pretty good spread and more than a little hypocritical on Fairfax’s part. As a longtime shareholder of both Brookfield/Brookfield Properties and Fairfax I don’t ever remember Brookfield suggesting that their takeovers would be fair and friendly as they tried to screw you. 

That is the difference.
Politicians and diapers must be changed often, and for the same reason. - Mark Twain

Gregmal

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #747 on: October 29, 2019, 06:16:38 PM »
Not for nothing, but I learned pretty quickly that one is significantly better off assuming that EVERY person they encounter in the financial industry is a total piece of shit. Ive now been in that biz(tangentially) for a while, and to this day, out of everyone Ive ever met, can count on one hand the number of people who would put people before dollars. It is what it is.

Orchard

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #748 on: October 30, 2019, 05:05:54 AM »
keep in mind that Fibrek shareholders are advocating the same thing....dollars first.

cwericb

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Re: Resolute Forest Products Commences Takeover bid of Fibrek
« Reply #749 on: October 30, 2019, 06:48:45 AM »
"Not for nothing, but I learned pretty quickly that one is significantly better off assuming that EVERY person they encounter in the financial industry is a total piece of shit. Ive now been in that biz(tangentially) for a while, and to this day, out of everyone Ive ever met, can count on one hand the number of people who would put people before dollars. It is what it is."

YUP.  However, my point was that there were people on the board defending Prem by saying that he wouldn't do anything shady. I argued that he most definitely did and this incident proved that Prem was being hypocritical with his "fair and friendly" BS. The court case proved that beyond question. So your point above is well taken.   
Politicians and diapers must be changed often, and for the same reason. - Mark Twain