Tembec warns that the batch cost risks descending if takeover rejected

Tembec is warning that a shares risk descending if shareholders opinion subsequent week to reject a $807 million US accessible takeover offer from Rayonier Advanced Materials.

The understanding is opposite by a company’s dual largest shareholders. Oaktree Capital Management and Restructuring Capital Associates.

Together a investors control a 37 per cent interest in Tembec, adequate to retard a transaction that requires support by a two-thirds infancy opinion of shareholders.

However, Tembec says there is no declaration that another customer will step brazen or would be peaceful to compensate as most if a understanding is not approved.

Tembec pronounced no other organisation offers have been presented given it began to examination a options in 2012 or after a understanding with a Florida association was announced in May.

The comments by Tembec came as eccentric substitute advisory organisation Glass Lewis endorsed Wednesday that shareholders opinion opposite a deal, observant Oaktree “makes a convincing argument” that a aloft offer cost is justified.

The Rayonier offer for Tembec is $4.05 in money or 0.2302 of a share in Rayonier Advanced Materials, theme to a top on a sum volume of money and shares that will be issued.

The accessible offer is 37 per cent above where Tembec’s shares traded before a proposal, though it is reduction than a $4.22 a shares traded for Wednesday afternoon.

Article source: http://www.cbc.ca/news/business/tembec-shareholder-vote-1.4212522?cmp=rss