July 14 (Reuters) - Oaktree Capital Management LP, the largest shareholder of Tembec Inc, said on Friday it would vote against Rayonier Advanced Materials Inc’s $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. ($1 = 1.2657 Canadian dollars) (Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar)