Abitibi, Bowater Shareholders Approve Merger Deal
July 26, 2007 - Abitibi-Consolidated and Bowater announced today that thier shareholders have voted in favor of the combination of the two companies. Approximately 80% of Abitibi's shareholders voted in favor of the deal, while 70% of Bowater's sharholders voted in favor.
"This is an historic day for Bowater, and I am very pleased that our stockholders have expressed their strong support for our proposed combination with Abitibi-Consolidated," said David J. Paterson, Bowater's chairman, president and Chief Executive Officer.
John Weaver, president and CEO of Abitibi-Consolidated, said, "I am very pleased to see that our shareholders share the same perspective on the benefit of the proposed combination with Bowater. We believe AbitibiBowater will be a global leader with a brighter future than either company would have on its own.
"We believe the combination with Bowater, which is expected to generate annualized synergies of at least US$250 million, will enhance financial flexibility, increase cash flow, and create a better opportunity to unlock future value," Weaver added.
The combined company, which will be called AbitibiBowater Inc. will produce a wide-range of newsprint, commercial printing papers, market pulp and wood products. It will be the eighth largest pulp and paper manufacturer in the world. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. It will also be among the world's largest recyclers of newspapers and magazines, and a global leader in sustainable forest management through independent third-party certification.
SOURCE: Abitibi-Consolidated Inc. and Bowater Inc.