UPDATE: Fibrek Adds a Third in Value, But Off Day Highs After Receiving Resolute Forest Bid
Fibrek Inc. (FBK.TO), currently trading at 97 cents, is down a bit from this morning's high price of $1.01 cents, after Resolute Forest Products' (ABH.TO) $1.00-a-share bid for the maker of kraft market pulp was announced. The offer calls on Resolute, formerly AbitibiBowater, to pay 55 cents a share in cash and issue Fibrek shareholders 0.0284 of a share in the combined companies.
Resolute said the acquisition will increase the company's capacity in growing pulp markets, adding shareholders representing 46% of Fibrek stock already have signed off on the deal.
More than 3 million Fibrek shares have changed hands this morning.
Resolute shares are now down 1.7% at $15.53 each, sliding 27 cents after earlier pushing to a 10-cent advance at $15.90 a share.
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