Longview Fibre Agrees to Sell

Longview Fibre was a great company with good management and I was squarely against this merger, blocking the first attempt by a Portland based private equity firm, Obsidian Capital. This attempt was blocked by involving the SEC and a proxy rule that prevents special shareholder meetings that do not disclose all material facts surrounding its purpose. This would include the source of financing by Obsidian and it was clear they were unwilling to disclose this. Obsidian had attempted to force the meeting using a Washington State law that requires a meeting if 10 percent of shareholders call for one.

The good news is that the later takeover by a Canadian firm was at roughly a 30 percent higher price for the stock. This article, Fibre agrees to sell, is the last of several in the Longview Daily News that featured my comments regarding this situation.

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