Abitibi-Consolidated, Bowater update merger timeline

By Lisa Kerner

Charlotte, N.C., Sept, 18 - The planned merger of Abitibi-Consolidated Inc. and Bowater Inc. continues to move forward with U.S. Department of Justice approval expected within the next few weeks, the companies announced on Tuesday.

Based on the current timeline, the transaction is now slated to close early in the fourth quarter, rather than in the third quarter.

As previously reported, under the Jan. 29, 2007 merger agreement, each common share of Abitibi-Consolidated will be exchanged for 0.06261 of a common share of the combined company, AbitibiBowater Inc. Each Bowater common share will be exchanged for 0.52 of a common share of AbitibiBowater.

AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The new company will keep its headquarters in Montreal for three years and will keep at least five Canadians on its board of directors as part of the merger approval under the Investment Canada Act.

Based in Montreal, Abitibi-Consolidated provides newsprint, commercial printing papers and wood products.

Bowater produces coated and specialty papers and newsprint in Greenville, S.C.

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