Tem­bec takeover un­der threat af­ter share­hold­ers op­pose deal

The Guardian (Charlottetown) - - BUSINESS -

MON­TREAL — The takeover of forestry com­pany Tem­bec ap­peared un­der threat af­ter the com­pany’s sec­ond-largest share­holder said it will vote against the friendly of­fer by Ray­onier Ad­vanced Ma­te­ri­als. Re­struc­tur­ing Cap­i­tal As­so­ciates (RCA), which owns 17.1 per cent of Tem­bec shares, said Tues­day it will join Oak­tree Cap­i­tal Man­age­ment in op­pos­ing the trans­ac­tion at the vote July 27.

To­gether the com­pany’s two largest share­hold­ers con­trol 37 per cent of Tem­bec (TSX:TMB) shares. The takeover re­quires sup­port by a two-thirds ma­jor­ity vote of share­hold­ers. RCA said it is sup­port­ive of Tem­bec man­age­ment and board’s turn-around ef­forts and the pro­posed merger with Ray­onier Ad­vanced Ma­te­ri­als. How­ever, it said the Florida com­pany must re­spond more ap­pro­pri­ately to Oak­tree’s com­plaints which it re­jected as “mis­lead­ing” on Mon­day.

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