Domtar responds to speculation about potential acquisition by Paper Excellence
“These discussions may or may not result in an agreement,” Domtar said in a statement.
This Tuesday, Domtar Corp. confirmed that it is in negotiations with Paper Excellence Canada regarding a possible business combination or acquisition.
Bloomberg reported in a story on May 3: “Canadian paper and packaging company Paper Excellence is exploring a deal to acquire U.S. rival Domtar Corp., according to people familiar with the matter.”
“The companies are working with advisers on a potential transaction that would take U.S.-listed Domtar private, said the people, who asked not to be identified because the details aren’t public. A deal could value Domtar’s shares in the mid-$50s, one of the people said. No final decision has been made and talks could fall through,” the Bloomberg story said.
In response to that speculation, Domtar said in a statement: “Domtar acknowledges that its management has been in discussions with Paper Excellence about such a potential transaction. However, these discussions may or may not result in an agreement.”
Domtar also said that it does not intend to make further comment unless or until there is a transaction to announce.
