We are investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Resolute Forest Products Inc. (“Resolute” or the “Company”) (NYSE: RFP) in connection with the proposed acquisition of the Company by The Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation (“Domtar”). The transaction will be carried out by way of a merger of Resolute with a newly created subsidiary of Domtar, providing for conversion of each share of Resolute common stock into the right to receive $20.50 per share, together with a Contingent Value Right (“CVR”) entitling the holder to a share of future softwood lumber duty deposit refunds. Each share, on a fully diluted basis at closing, will be entitled to receive one CVR. The transaction is valued at approximately $2.7 billion.
Weiss Law is investigating whether (i) Resolute’s board of directors acted in the best interests of Company shareholders in agreeing to the proposed transaction, (ii) the $20.50 per-share merger consideration adequately compensates Resolute’s shareholders, and (iii) all information regarding the sales process and valuation of the transaction will be fully and fairly disclosed.