Business
Committee Established for Shareholders Action for Pulp Producer, Mercer International Inc.
HONG KONG, Jan. 16 /CNW/ -- The Mercer Shareholders Committee ("Committee") announces that it has...
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\nHONG KONG, Jan. 16 /CNW/ -- The Mercer Shareholders Committee\n("Committee") announces that it has been established today by shareholders of\nMercer International Inc. ("Mercer") (Nasdaq: MERC, TSX: MUI.U)\n\n\nThe mandate of the Committee will be to unlock the value of the Mercer's\ncommon shares by requesting drastic corporate changes within Mercer, and to\neither have the company sold or create a joint venture with a strategic\ninvestor to realize the highest value for the shareholders.\n\n\nBased on published reports, several investment bankers believe that\nMercer is worth between US$11.50 and US$13.50 a share.\n\n\nMercer's present management and Board of Directors have little or no\ninvestment in the company, and therefore no real incentive to achieve maximum\nshareholder value. The Committee is currently establishing a website that will\nbe operational shortly, and it will show both the cost base and selling\npatterns of these shareholdings.\n\n\nMercer's mill at Stendal, Germany has a 29.42% minority shareholder that\nis a private equity firm which has stated that it just wants to sell its\nshares. This mill produces approximately 45% of Mercer's entire production,\nand Mercer's Chairman stated that the company does not wish to purchase this\nshareholding. We believe this position should be acquired, and some of our\nmembers are willing to discuss financing the project to create greater overall\nvalue.\n\n\nWe have requested that Mercer hire an independent, qualified investment\nbanking firm to complete this action (not RBC Dominion Securities Inc., as we\nbelieve they are conflicted), and if they choose not to do it, we will.\n\n\nIn that regard, we have started the process and are now interviewing\ninvestment bankers to represent the Committee and shareholders, and intend to\nhold an auction for Mercer with or without the cooperation of the Board of\nDirectors and management. We sincerely hope this is not necessary and that\nthe Board will do what is in the best interests of shareholders, however, we\nwill keep you informed.\n\n\nWith pulp now selling at a 12 year high, it is time for action.\n\n\nOur Committee will operate in an open and transparent manner, and issue\npress releases to update all Mercer shareholders and stakeholders on a\ncontinuing basis.\n\n\nToday, we have asked Mercer ...