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Mercer exits bid battle for Fibrek

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Mercer International (TSE:MRI)(NASDAQ:MERC) Monday withdrew from its battle to buy Fibrek (TSE:FBK) after nearly three months of legal setbacks.

The exit clears the way for AbitibiBowater (NYSE:ABH)(TSE:ABH), which operates under the Resolute Forest Products name, whose $1 per share offer values Fibrek at $130 million.

Mercer will return the Fibrek shares that were tendered under its $1.40 per share offer, it said in a statement. Mercer was unable
to acquire at least 50.1 per cent of Fibrek's outstanding shares but will walk away with a $8.5 million break fee.

Mercer was set to exit after Canada's top court dismissed its appeal against a lower court ruling blocking a key term of its deal with Fibrek. Mercer's offer had the support of Fibrek management.

Resolute has acquired nearly 61 million Fibrek shares, representing 46.8 per cent ownership of the pulp and fibre producer.

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TSX:FBK
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