Longview Fibre Takeover Bid Revised
June 29, 2006 (Press Release) - Longview Fibre Company today announced that it received a letter, dated June 28, 2006, from Obsidian Finance Group, LLC and The Campbell Group, LLC ("Obsidian/Campbell"), in which they indicated they were revising their proposed price to $20.51 per share in cash, subject to mathematical reduction to the extent shares are issued in the company's previously-announced special distribution at a value below their offer. The letter states that their proposed price per share takes into account the cash to be paid in the special distribution, and states that Obsidian/Campbell calculate that their new price equates to a pre-special distribution price of $28.05 per share.
As was the case with their previous proposal, Obsidian/Campbell's June 28 proposal, including price, is subject to certain conditions, including completion of satisfactory due diligence and financing. Obsidian/Campbell provided with their June 28 letter a copy of a letter from JPMorgan Chase Bank, N.A. relating to debt financing for their proposal. JPMorgan's commitment to provide financing is subject to completion of satisfactory due diligence and a number of other conditions.
Longview's Board of Directors rejected Obsidian/Campbell's previous proposal at a pre-special distribution price of $26 per share. The Board of Directors will review Obsidian/Campbell's June 28 proposal in due course.
SOURCE: Longview Fibre Company