Pretty good I'd say...
March 28 (Reuters) - Fibrek Inc said it will seek permission, along with its friendly bidder Mercer International , from the Supreme Court of Canada to appeal against a Quebec court decision to block a key term of their deal.
Late on Tuesday, the Quebec Court of Appeal reinstated a cease trade order on Fibrek's private placement of 32.32 million special warrants to Mercer, following an appeal by hostile bidder AbitibiBowater.
Shares of Fibrek fell as much as 8 percent to C$1.07 on Wednesday morning on the Toronto Stock Exchange. The stock was one of the biggest percentage losers on the exchange.
"We are disappointed with the decision of the Quebec Court of Appeal," said Mercer Chief Executive Jimmy Lee.
Abitibi, which operates under the business name Resolute Forest Products, has been trying to block the Mercer bid.
Earlier this month, the Quebec Court of Appeal granted Abitibi permission to appeal the Court of Quebec's decision that had overturned the Bureau de decision et de revision's decision to block Fibrek's private placement of warrants to Mercer.
The private placement of 32.32 million was part of Mercer's offer of about C$170 million, which is 30 percent higher than Abitibi's.
"We continue to believe that the Bureau's decision to cease trade the private placement diverged from accepted legal principles and unfairly inhibits Fibrek shareholders from obtaining the higher consideration under our offer," Lee said.