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Resolute extends bid, says 46.8% of Fibrek shareholders accept offer

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AbitibiBowater (NYSE:ABH)(TSE:ABH), which operates under the Resolute Forest Products name, Thursday said 46.8 percent of Fibrek shareholders have accepted its $1 per share offer that values Fibrek at $130 million.

AbitibiBowater will pay $33.5 million in cash and 1.7 million of its own shares to acquire the 60.8 million Fibrek shares tendered.

It has also extended its offer deadline to April 23.

Resolute had attempted to acquire at least two-thirds of Fibrek's shares through a hostile takeover bid but has been thwarted by the smaller pulp and fiber producer and Mercer International (NASDAQ:MERC), which is bidding $1.30 per Fibrek share.

Fibrek announced earlier Wednesday that the Supreme Court of Canada has agreed to fast-track the appeal process of a Quebec court decision in Resolute's favour.

Canada's highest court has set a Friday deadline for all submissions on whether it should hear the appeal.

The court could decide on overturning a Quebec Court of Appeal decision that maintains a cease trade order of 32.3 million special warrants to purchase Fibrek shares by Mercer.

Fibrek also announced a new shareholder rights plan but a Quebec regulator quickly vetoed the defensive measure.

Fibrek said late Wednesday it would appeal the regulator's decision.

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