Third Avenue ups stake in Abitibi-Consolidated ahead of merger

By Lisa Kerner

Charlotte, N.C., July 13 - Abitibi-Consolidated Inc. investor Third Avenue Management LLC purchased 14,281,400 shares of the company's stock between April 23 and June 25, priced from $2.45 to $2.99 per share, according to a schedule 13D filing with the Securities and Exchange Commission.

Third Avenue said it bought the shares as an investment and does not plan to become active at this time. The investor beneficially owns 54,756,503 shares, or 12.44%, of the company.

As previously reported, Abitibi-Consolidated shareholders will vote on the company's proposed merger with Bowater Inc. at a special meeting on July 26. Under the companies' merger agreement, each common share of Abitibi-Consolidated will be exchanged for 0.06261 of a common share of the newly formed company, AbitibiBowater Inc. Each Bowater common share will be exchanged for 0.52 of a common share of AbitibiBowater.

AbitibiBowater will be based in Montreal, with regional manufacturing and sales offices in Greenville, S.C. Its stock will be listed on the New York and Toronto stock exchanges.

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