MONTREAL and GREENVILLE, SC, July 17 /PRNewswire-FirstCall/ --
Abitibi-Consolidated Inc. (NYSE:ABYNYSE:TSX:NYSE:A) and Bowater
Incorporated (NYSE: BOWNYSE:TSX:NYSE:BWX) today announced the
proposed executive team to lead AbitibiBowater Inc., pending
approval of the proposed combination and appointment by the Board
of AbitibiBowater. As previously announced, John W. Weaver,
currently President and Chief Executive Officer of
Abitibi-Consolidated, will be Executive Chairman of the new
company, responsible for all corporate functions. David J.
Paterson, currently Chairman, President and Chief Executive Officer
of Bowater, will serve as President and Chief Executive Officer of
AbitibiBowater, with primary responsibility for operations and
sales. "We're creating a stronger global leader better able to
succeed in a competitive market, and this is the team that will
lead that effort," said Mr. Weaver. "Our first priority is to
deliver at least US$250 million in synergies, which will create
significant value for investors. We are confident that this
executive team will deliver on the synergy commitment." "We've
chosen a talented group of seasoned professionals with diverse and
impressive backgrounds to lead the new company. This team will work
across the organization to engage all employees, collectively
building a successful future," added Mr. Paterson. "The team will
work in partnership with our customers to ensure a dependable
source for a range of forest products and best-in-class customer
service. Furthermore, we believe the new executive team of a larger
combined company will create significant value for our investors.
We expect to have enhanced financial flexibility, increased cash
flow and a better opportunity to unlock future value."
AbitibiBowater will be organized into four primary businesses:
North American Newsprint, International, Commercial Printing and
Coated Papers, and Wood Products. Each business will have
bottom-line responsibility for all aspects of operations and sales.
In addition to Messrs. Weaver and Paterson, AbitibiBowater's
executive team is expected to include the following nine
executives: - Alain Grandmont, Senior Vice President, Commercial
Printing and Coated Papers Business. Mr. Grandmont is currently
Senior Vice President, Commercial Printing Papers, for
Abitibi-Consolidated. - William G. Harvey, Senior Vice President
and Chief Financial Officer. Mr. Harvey is currently Bowater's
Executive Vice President and Chief Financial Officer. - Yves
Laflamme, Senior Vice President, Wood Products Business. Mr.
Laflamme is currently Abitibi-Consolidated's Senior Vice President,
Woodlands and Sawmills. - Jon Melkerson, Senior Vice President,
Business and Corporate Development - inclusive of the growing
Recycling and Energy businesses, as well as Marketing, Strategic
Planning and Manufacturing Excellence. Mr. Melkerson is currently
Abitibi-Consolidated's Vice President, International Newsprint
Sales. - Pierre Rougeau, Senior Vice President, North American
Newsprint Business. Mr. Rougeau is currently Abitibi-Consolidated's
Senior Vice President, Corporate Development and Chief Financial
Officer. - W. Eric Streed, Senior Vice President, Supply Chain -
comprised of Information Technology, Customer Service, Logistics
and Procurement. Mr. Streed is currently Bowater's Executive Vice
President, Operations and Process Improvement. - Thor Thorsteinson,
Senior Vice President, International Business - inclusive of
international newsprint and pulp. Mr. Thorsteinson is currently
Abitibi-Consolidated's Senior Vice President, Newsprint. - Jacques
P. Vachon, Senior Vice President, Corporate Affairs and Chief Legal
Officer, will have responsibility for overseeing the combined
company's Legal, Communications & Government Affairs, Internal
Audit and Environment & Sustainability functions. Mr. Vachon
currently holds a similar position within Abitibi-Consolidated. -
James T. Wright, Senior Vice President, Human Resources. Mr. Wright
currently holds similar responsibilities at Bowater. The executive
team has been proposed by Abitibi-Consolidated and Bowater. The
team's appointment is subject to the approval of the Board of
AbitibiBowater. As previously announced, Institutional Shareholder
Services Inc. (ISS) and Glass Lewis & Co., two leading
independent proxy advisory firms, have recommended that
Abitibi-Consolidated shareholders and Bowater stockholders vote in
favor of the proposed combination. AbitibiBowater will be the 3rd
largest publicly traded paper and forest products company in North
America and the 8th largest in the world. AbitibiBowater will own
or operate 32 pulp and paper facilities and 35 wood product
facilities located mainly in Eastern Canada and the Southeastern
U.S. It will also be among the world's largest recyclers of
newspapers and magazines, and a global leader in sustainable forest
management through independent third-party certification. About
Abitibi-Consolidated Inc. Abitibi-Consolidated is a global leader
in newsprint and commercial printing papers as well as a major
producer of wood products, serving clients in some 70 countries
from its 45 operating facilities. Abitibi-Consolidated is among the
largest recyclers of newspapers and magazines in North America,
diverting annually approximately 1.9 million tonnes of waste paper
from landfills. It also ranks first in Canada in terms of total
certified woodlands. About Bowater Incorporated Bowater
Incorporated is a leading producer of coated and specialty papers
and newsprint. In addition, the company sells bleached market pulp
and lumber products. Bowater employs approximately 7,000 people and
has 12 pulp and paper mills in the United States, Canada and South
Korea. In North America, it also operates one converting facility
and owns ten sawmills. Bowater's operations are supported by
approximately 763,000 acres of timberlands owned or leased in the
United States and Canada and 28 million acres of timber cutting
rights in Canada. Bowater operates six recycling plants and is one
of the world's largest consumers of recycled newspapers and
magazines. Forward-Looking Statements Any statements made regarding
the proposed combination between Abitibi-Consolidated Inc. and
Bowater Incorporated, benefits or synergies of the combination, and
other statements contained in this news release that are not
historical fact are forward-looking statements that are based on
management's beliefs, certain assumptions and current expectations.
These statements may be identified by the use of forward-looking
terminology such as the words "expects," "projects," "intends,"
"believes," "anticipates" and other terms with similar meaning
indicating possible future events or actions or potential impact on
the businesses or shareholders of Abitibi-Consolidated and Bowater.
Such statements include, but are not limited to, statements about
the combined company's future range of products and customer
service, the new company's positioning in the marketplace, the
delivery of US$250 million in synergies, the combined company's
future financial flexibility and the future development of its
business. This news release also includes information that has not
been reviewed by either company's independent auditors. There is no
assurance the combination contemplated in this news release will be
completed at all, or completed upon the same terms and conditions
described. All forward-looking statements in this news release are
expressly qualified by information contained in each company's
filings with regulatory authorities. The following factors, among
others, could cause actual results to differ materially from those
set forth in the forward-looking statements: the ability to obtain
required governmental or third party approvals of the combination
on the proposed terms and schedule and without material
concessions; the failure of Abitibi-Consolidated or Bowater
shareholders to approve the combination; the exercise by a material
percentage of Abitibi-Consolidated shareholders of their dissent
rights; the risk that the businesses will not be integrated
successfully; the risk that the cost savings and other expected
synergies from the combination may not be fully realized or may
take longer to realize than expected; and disruption from the
combination making it more difficult to maintain relationships with
customers, employees or suppliers. Additional factors that could
cause Abitibi-Consolidated's and Bowater's results to differ
materially from those described in the forward-looking statements
can be found in the periodic reports filed by Abitibi-Consolidated
and Bowater with the SEC and the Canadian securities regulatory
authorities and available at the SEC's internet site
(http://www.sec.gov/) and on SEDAR (http://www.sedar.com/). Neither
Abitibi-Consolidated nor Bowater undertakes and each specifically
disclaims, any obligation to update or revise any forward-looking
information, whether as a result of new information, future
developments or otherwise. Additional Information and Where to Find
It In connection with the proposed combination, AbitibiBowater has
filed and the Securities and Exchange Commission (SEC) has declared
effective a registration statement on Form S-4, which includes a
definitive proxy statement of Bowater, a prospectus of
AbitibiBowater and a management information circular of
Abitibi-Consolidated. Shareholders are urged to read the joint
proxy statement/prospectus/management information circular
regarding the proposed combination, and any other relevant
documents filed or to be filed by Abitibi or Bowater because they
contain or will contain important information. Shareholders may
obtain a free copy of the definitive joint proxy
statement/prospectus/management information circular, as well as
other filings containing information about Abitibi-Consolidated and
Bowater, without charge, at the SEC's internet site
(http://www.sec.gov/) and on SEDAR (http://www.sedar.com/). Copies
of the definitive joint proxy statement/prospectus/management
information circular and the filings with the SEC and the Canadian
securities regulatory authorities that will be incorporated by
reference in the definitive joint proxy
statement/prospectus/management information circular can also be
obtained, without charge, by directing a request to
Abitibi-Consolidated, 1155 Metcalfe Street, Suite 800, Montreal,
Quebec, Canada H3B 5H2, Attention: Investor Relations Department,
(514) 875-2160, or to Bowater, 55 E. Camperdown Way, Greenville,
SC, USA, 29602, Attention: Investor Relations Department, (864)
282-9473. Participants in the Solicitation Abitibi-Consolidated,
Bowater and their respective directors and executive officers and
other persons may be deemed to be participants in the solicitation
of proxies in respect of the proposed combination. Information
regarding Abitibi-Consolidated's directors and executive officers
is available in Abitibi-Consolidated's Annual Information Form for
the year ended December 31, 2006 filed on SEDAR by
Abitibi-Consolidated on March 15, 2007 (which was filed with the
SEC on March 15, 2007 on Form 40-F), and the management proxy
circular with respect to Abitibi-Consolidated's 2007 Annual Meeting
of Shareholders filed by Abitibi-Consolidated on SEDAR on April 5,
2007 (which was filed with the SEC on April 5, 2007 on Form 6-K).
Information regarding Bowater's directors and executive officers is
available in the Annual Report on Form 10-K for the year ended
December 31, 2006 filed with the SEC by Bowater on March 1, 2007,
as amended by Amendment # 1 filed with the SEC by Bowater on April
30, 2007 and in the definitive proxy statement with respect to
Bowater's 2007 Annual Meeting of Stockholders which is included in
the registration statement on Form S-4 filed by AbitibiBowater on
March 20, 2007, as amended, and is filed with the SEC on Schedule
14A. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the
definitive proxy statement/prospectus/management information
circular and other relevant materials filed or to be filed with the
SEC and the Canadian securities regulatory authorities. Contacts
Investors: Abitibi-Consolidated Francesco Alessi Vice President,
Investor Relations and Taxation (514) 394-2341 Investors: Bowater
Duane A. Owens Vice President and Treasurer (864) 282-9488 Media:
Abitibi-Consolidated Denis Leclerc Director, Public Affairs (514)
394-3601 Media: Bowater Kathleen Bennett Vice President -
Government Affairs, Communications & Environment (864) 282-9452
DATASOURCE: ABITIBI-CONSOLIDATED INC. CONTACT: INVESTORS:
Abitibi-Consolidated: Francesco Alessi, Vice President, Investor
Relations and Taxation, (514) 394-2341, ; Bowater: Duane A. Owens,
Vice President and Treasurer, (864) 282-9488, ; MEDIA:
Abitibi-Consolidated: Denis Leclerc, Director, Public Affairs,
(514) 394-3601 ; Bowater: Kathleen Bennett, Vice President -
Government Affairs, Communications & Environment, (864)
282-9452,
Copyright