Mercer inches closer to Fibrek deal

Fri Mar 9, 2012 8:04pm EST
 
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(Reuters) - Canada's Mercer International Inc MRIu.TO (MERC.O: Quote) said the Court of Québec has reversed a cease trade order against a private placement of special warrants by Fibrek Inc FBK.TO to Mercer.

On February 23, the Bureau de décision et de révision had issued a cease trade order against the private placement of 32,320,000 special warrants to Mercer.

Mercer and Resolute Forest Products ABH.TO, previously known as AbitibiBowater, are both looking to buy Canadian pulp producer Fibrek.

"We now look forward to effecting our offer to acquire all of the outstanding common shares of Fibrek..." Mercer CEO Jimmy Lee said in a statement.

Separately, AbitibiBowater said it has extended the expiry date for its offer to acquire Fibrek to March 19.

(Reporting by Shounak Dasgupta in Bangalore; Editing by Supriya Kurane)