(Reuters) - Oaktree Capital Management LP, the largest shareholder of Tembec Inc TMB.TO, said on Friday it would vote against Rayonier Advanced Materials Inc’s (RYAM.N) $807 million acquisition of the Canadian forest products company.
Los Angeles-based Oaktree, which owns 19.9 percent of Tembec, called on Rayonier to sweeten its bid, saying: “If the offer is not increased, we believe Tembec shareholders would be better off ... independent.”
Jacksonville, Florida-based Rayonier, which supplies cellulose found in cellphones, computer screens and pharmaceutical drugs, said in May it would buy Tembec to expand into packaging and forest products.
It offered C$4.05 in cash or 0.2302 of a Rayonier share for each Tembec share.
In a separate statement on Friday, Tembec said proxy advisory firm Institutional Shareholder Services had recommended that the Canadian firm’s shareholders vote in favor of the deal under Rayonier’s proposed terms.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar