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Norske Sells Entire Stake in Catalyst |
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The Globe and Mail
By PETER KENNEDY
Tuesday, January 31, 2006 Page B5
VANCOUVER -- Norwegian paper maker Norske Skogindustrier ASA is selling
its entire 29.4-per-cent stake in Vancouver-based forest products
company Catalyst Paper Corp. in a secondary stock offering worth
$192-million.
Norske Skog is selling its 63 million Catalyst shares for $3.05 each in a bought deal with UBS Securities Canada Inc.
One analyst said he sees the transaction as a sign the Norwegian
company is not prepared to wait for economic fundamentals to improve in
a sector that has been hammered by the strong dollar and stiff global
competition.
The Canadian company will receive no proceeds from the offering, after
which Norske Skog will have no interest in Catalyst. The deal is
scheduled to close on Feb. 16.
The sale was announced yesterday after the close of trading on North
American stock markets. Catalyst shares closed down 3 cents to $3.43 on
the Toronto Stock Exchange. |
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