Pulp producer Fibrek Inc said Mercer International Inc has raised its offer for the company by 8 percent, further increasing its lead over hostile bidder AbitibiBowater Inc. Mercer raised its offer to C$1.40 per share from C$1.30 per share, Fibrek said in a statement.The raised Mercer offer represents a 40 percent premium to Abitibi's bid, Fibrek said.Fibrek's board, which supports the Mercer offer, has adopted a poison pill that would enable shareholders to benefit from the increased Mercer offer.AbitibiBowater, which operates under the name of Resolute Forest Products, has offered C$1 per share.
Fibrek Inc., along with its subsidiaries, is a producer and marketer of virgin and recycled kraft pulp. Shares of FBK traded higher by 15.24% or $0.16/share to $1.21. On average, 0 shares of FBK.TO exchange hands on a given day and today's volume is recorded at 126001.
Mercer Inc. (Mercer) operates in the pulp business and is the producer of market northern bleached softwood kraft (NBSK) pulp. Shares of MERC fell by 1.06% or $-0.08/share to $7.48. In the past year, the shares have traded as low as $5.30 and as high as $13.99. On average, 203611 shares of MERC exchange hands on a given day and today's volume is recorded at 600.
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