Murders and Executions, Part II

[mbarrick]

Interfor to Aquire Riverside

Riverside Forest Products today announced that it has signed a definitive agreement with International Forest Products ("Interfor") pursuant to which Interfor will make an offer to acquire Riverside for $39 per share in cash and Interfor Class A shares, or $35 per share in cash and Interfor Class A shares plus a Contingent Value Right (CVR) to receive any U.S. softwood duty refunds received by Riverside.

Another day, another company. It's almost like consulting again... who am I working for this week?

Comments

[valerian.livejournal.com]

OMG... $39 a share. Wasn't it just $26 less than a month ago? You guys are in demand, babe! Still, yeah, kinda makes wondering who'll be signing your paycheque the mystery of the week, doesn't it?

You just watch that stress level, mister.

[mbarrick.livejournal.com]

Yeah. Thorlakson likely got his shares in the $8-$14 range. The stock was at $23.50 when he announced the takeover bid. He's made something to the tune of $50 million.

Jake got $50 million for his half of Lignum and a crap load of stock. I guessing he'll have about $20 million more at the end of this deal.

How much money is that in concrete terms? Cathedral place, across from the Hotel Vancouver, was built for $70 million dollars. By the end of this year Jake will have made enough money to build his own personal downtown skyscraper from scratch.

Who'd have though there was so much money to be made hacking trees into 2x4's?

[seymour-glass.livejournal.com]

the bigger fish just keep gobbling up the littler ones...well at least it's still canadian, and the controlling interest sauder industries is based in langley...both head offices are in bentall four...

[mbarrick.livejournal.com]

The funny thing is that it may be the little fish swalling up the bigger ones. There isn't much doubt that as with Riverside, the Lignum way of doing things is likely to come out on top for the most part.

To me it totally makes sense. Lignum, despite only having one mill, made a ton of money. Riverside was much bigger but much less profitable and much less influential with the government. It wasn't about just buying up another mill, but rather buying into a better way of doing things. Interfor is amost exclusively coastal mills, which haven't been doing well lately. Interior operations are doing very well right now because of the plentitude of cheap beetle-kill lumber. But in a few years there is going to be a lumber shortage in the interior when the dead trees run out and new trees aren't ready for harvest yet. At this point the Lignum way of doing things, which is to invest in better technology when times are good will be pushed out to the coast mills and when the wood supply falters in the interior Lignum-->Riverside-->Interfor will be producing coast lumber in a way no one will be able to touch. This is my prediction.

In the mean time Lignum-style environmental policy and First Nations relations will be implemented in Interfor. When it comes time to start logging in Carmannah again the local indian bands will have a stake in it and the environmentalists will be holding us up as an example rather than the sort of stuff that happened last time.

And I'll be doing the website.

[seymour-glass.livejournal.com]

well hey if the little guy can influence the big guy with a much better way to do business then score one for the little guy...not often the big guys take any notice of how the little guy is doing things...they normally assume their way is the only way to do business...and no matter what comes of it as long as your place remains you have no worries...just think of how i feel everytime there is a change in government...nothing officially changes but many of our policies take a much different slant with a new cabinet and minister...but no matter what we just keep plugging away...