The Globe and Mail reports in its Saturday edition that Fairfax Financial Holdings says its intentions have been
misunderstood by Oaktree Capital Management.
The Globe's Jacqueline Nelson and Nicolas Van Praet write that Oaktree is
Tembec's largest shareholder.
It is seeking a
better price than what
Rayonier Advanced Materials offered in
May. It has been gathering opponents to kill the
deal.
Oaktree says Tembec is selling
itself to an opportunistic buyer at
a price that is unfair to shareholders
without having conducted a
disciplined sales process. It has
also zeroed in on Fairfax, saying
it should not
get a say in this week's vote on
the transaction because it has
sold down its position since the
merger was announced.
Fairfax says is has no intention to
vote on shares that it no longer
owns.
The conflict stems from disclosure
made when Rayonier and
Tembec announced their merger
and said Fairfax, then Tembec's largest
shareholder, supported the deal.
Over the subsequent three
weeks, Fairfax sold off its interest in
Tembec.
Oaktree seized on
this exit, saying that Tembec and
Rayonier potentially misled
investors into thinking Fairfax
believed in the long-term value
of the deal.
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