Fairfax Financial Holdings filed 13D in AbitibiBowater Inc.(ABH) on December 6th. In the filing, Fairfax Financial Holdings mentioned that it entered into a lock-up agreement on November 28th with AbitibiBowater “in connection with AbitibiBowater’s intended take-over bid to acquire all of the issued and outstanding common shares of Fibrek”. Fairfax would receive either cash or a mix of cash and AbitibiBowater common shares if the take-over bid is completed. Fairfax Financial Holdings did not change its position in ABH, and it still has 17.50 million shares or 18% activist stake in the company. On November 30th, AbitibiBowater unsolicited offered to acquire Fibrek Inc. (FBK.TO). The firm offered 235 million CAD or $227.5 million, including a pay-down of Fibrek’s debt, according to Moody’s.
According to Insider Monkey’s hedge fund tracking list, several hedge funds took ABH in their portfolios in the third quarter. Michael Johnston’s Steelhead Partners took the most and reported 9.71 million shares. John Paulson’s Paulson & Co had 5.04 million shares. Francis Chou’s Chou Associates Management reported 2.69 million shares at the end of September.
Per Google Finance, Fairfax Financial Holdings Limited “is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company segments consists of Insurance, Reinsurance, Reinsurance and Insurance – Other, formerly Reinsurance, Runoff, Other and Corporate and Other. Northbridge Financial Corporation (Northbridge) is a national commercial property and casualty insurer in Canada providing property and casualty insurance products. Odyssey Re Holdings Corp. (OdysseyRe) underwrites reinsurance, providing a range of property and casualty products on a worldwide basis. This segment consists of Group Re and Advent Capital (Holdings) PLC (Advent). The runoff segment consists of nSpire Re Limited (nSpire Re).On May 20, 2010, Its Fairfax Financial Holdings Limited acquired Zenith National Insurance Corp. (Zenith National).”
AbitibiBowater Inc. “is a global forest products company. The Company’s segments include newsprint, coated mechanical and specialty papers, market pulp and wood products. AbitibiBowater is a recycler of newspapers and magazines in North America. As of December 31, 2010, the Company owned or operated 18 pulp and paper manufacturing facilities located in Canada, the United States and South Korea and 24 wood products facilities located in Canada. The Company manages its business based on the products that the Company manufactures and sells to external customers. The Company supplies publishers with newsprint, including eco-friendly products made with 100% recycled fiber and distributes newsprint by rail, truck and ship.”