Longview Fibre Rejects Offer from Private Equity Firms
March 6, 2006 - Longview Fibre Company yesterday confirmed that it had been approached by Obsidian Finance Group, LLC and The Campbell Group LLC, two Portland, Oregon-based private equity firms, with an unsolicited, conditional proposal to acquire the company.
The offer is reportedly for about $1.3 billion in cash. Longview has rejected the proposal.
Longview said in a statement that "since first approached in December, the Board of Directors carefully considered the proposal
and concluded that it was in the best interests of Longview and its shareholders to complete the
REIT conversion process rather than pursue discussions with Obsidian and The Campbell Group."
In late July 2005, Longview's announced that its Board of Directors had approved a plan for a corporate restructuring to qualify the company as a real estate investment trust ("REIT").
According to Reuters, Obsidian was disappointed that Longview would not discuss its offer. "Longview's Board and management team have an obligation to act in the best interest of all shareholders. We don't understand how their refusal to meet with us fulfills that obligation, and we remain committed to pursuing our proposal," the firm told Reuters.
However, Longview stated that it has "carefully studied the REIT conversion and other alternatives for the past year. The Board of Directors is committed to maximizing
shareholder value and in that regard believes the REIT conversion and related financings are integral components of the company’s value creation strategy."
Obsidian and Campbell have hired JPMorgan as financial adviser on the deal.
SOURCE: Longview Fibre Company