Longview Fibre to Explore Strategic Alternatives
July 19, 2006 (Press Release) - Longview Fibre Company today announced that its Board of Directors has decided to explore a range of strategic alternatives to further enhance shareholder value. These strategic alternatives may include, but are not limited to, continued execution of the company's operating plan, a sale or merger of the company or other strategic transaction, and a sale of certain company assets. Goldman, Sachs & Co. and Banc of America Securities LLC, the company's financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP and Perkins Coie LLP, the company's legal advisors, will assist in this effort.
"Our Board of Directors and management are committed to enhancing value for our shareholders," said Richard H. Wollenberg, Longview Fibre's President, Chief Executive Officer and Chairman of the Board. "Over the last several years, we have taken decisive actions to improve operations, restructure our company and accelerate the delivery of value to shareholders, including our conversion to a REIT and implementation of our operating plan. With this strong foundation, we believe that now is the right time to explore our strategic alternatives to enable our Board of Directors to determine the best course for enhancing shareholder value."
As part of the exploration of strategic alternatives process, Longview Fibre would anticipate sharing non-public information with interested parties, including Obsidian Finance Group, LLC and The Campbell Group, LLC (Obsidian/Campbell), subject to their entering into appropriate confidentiality agreements.
The company noted that there can be no assurance that the exploration of strategic alternatives will result in any agreements or transactions. The company does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until the Board has made a final decision.
In light of the decision to explore strategic alternatives, the Board also announced the postponement of the special meeting of shareholders that it had voluntarily scheduled for September 12, 2006 to consider various non-binding, advisory resolutions advocated by Obsidian/Campbell. Obsidian/Campbell has also delivered a shareholder demand for a shareholder meeting relating to their resolutions. Unless the demand is withdrawn, the company would expect to have a special meeting of shareholders in the fall.
Mr. Wollenberg said, "We have postponed the special meeting of shareholders that we called because we believe it is important that we direct our efforts and attention to exploring all strategic alternatives and executing on our operating plan without the distraction of a special meeting of shareholders."
SOURCE: Longview Fibre Company