Mercer Shareholders Committee says it's time for action, including a sale of the company

By Lisa Kerner

Charlotte, N.C., Jan. 16 - Shareholders of Mercer International Inc. formed the Mercer Shareholders Committee, it was announced on Wednesday.

The goal of the committee is to "unlock the value of ... Mercer's common shares by requesting drastic corporate changes within Mercer, and to either have the company sold or create a joint venture with a strategic investor to realize the highest value for the shareholders," according to a committee news release.

Based on published reports, several investment bankers believe Mercer is worth between $11.50 and $13.50 a share, the release stated.

The committee suggested that Mercer buy out the 29.42% minority shareholder at its mill in Stendal, Germany, which produces 45% of the company's entire production. According to the release, the shareholder wants to sell its shares, but the company is uninterested.

The shareholders committee said Mercer's present management and board of directors have little or no investment in the company and no incentive to achieve maximum shareholder value.

The committee warned it may hold an auction for Mercer with or without the cooperation of the board of directors and management.

"With pulp now selling at a 12 year high, it is time for action," the committee said in its release.

The Mercer Shareholders Committee vowed to "operate in an open and transparent manner" while providing updates to all Mercer shareholders and stakeholders.

Mercer is a pulp manufacturing company based in Vancouver, B.C.

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