Pattison Increases Control Of Forestry Giant Canfor

Thursday, November 08, 2007 10:13 AM

Jimmy Pattison has increased his share in CANFOR to 25.93 %, making him the largest single shareholder in the company. Great Pacific Industries Inc. says they have purchased an additional 276,000 CANFOR shares boosting its stake to 8.3 percent. The 25.93 % figure includes two other Pattison investment arms.

Pattison’s stake was 25.05% in May.

Pattison has a seat on the Board where earlier this year he helped scuttle plans to adopt a poison pill takeover. He was among a group of major Canfor shareholders that defeated a management proposal to adopt a poison pill, which would have also limited his ability to increase his stake in the company.

CANFOR shares have been trading at about $8.39 this week, having hit a 52 week low of $ 8.29. In mid July the company’s shares were trading at $13.98 .

The supporters of the poison pill said it was necessary to prevent the takeover of CANFOR by large shareholders taking advantage of the depressed value of the shares.

Peter Bentley is Chairman of the board.

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Posted on Thursday, November 08, 2007 10:13 AM in News by 250 News

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Comments

Posted by: owl on November 8 2007 10:25 AM

Geez, Pattison must know something people on this board don't.

He must not have read the thing about forestry as we know it being dead.

Hey, wait a minute, I completely forgot .... there is a guy who sees opportunities where others see the sky falling.

;-)

Posted by: diplomat on November 8 2007 12:20 PM

Smart man! Jimmy noticed that beetles killed a lot of trees and that all the other species of trees are still growing like before - over an area larger than the size of France and Germany combined...

;-)

Posted by: DPJ on November 8 2007 1:55 PM

BC man suporting BC company. Smart idea for others to think about.

Posted by: lmorg on November 8 2007 2:20 PM

Or, it will mean a nice corporate loss for him tax wise.

Posted by: Andyfreeze on November 8 2007 2:22 PM

Jimmy ain't dumb when it comes to business opportunities.
He did this for a reason, and we would all do well to pay attention to that fact.
Now...if we could only figure that reason out?

Posted by: lmorg on November 8 2007 6:13 PM

Taxes, dude, taxes. Corporate loss means a huge tax savings that he can recoup.

Posted by: Andyfreeze on November 8 2007 6:40 PM

Yup, taxes would seem the most likely reason,but with Jimmy,ya just never know!

Posted by: Andyfreeze on November 8 2007 6:52 PM

Yup, taxes would seem the most likely reason,but with Jimmy,ya just never know!

Posted by: zoom on November 9 2007 6:31 AM

Many people make millions buying investments when they look like there is a bad future for them and the herd is selling their shares. Secondly, while the forest industry looks awful and there will be casualties eg.Pope and Talbot, many of the smaller operation, Canfor has an efficient operation with a fair amount of cash in the till. Even though production over the next few years will decrease, the market share could grow from the cuurent 6% to upward of 15% with the disappearing of the competition. IMORG the tax loss is the most ridiculous thing I have heard

Posted by: metalman on November 9 2007 8:00 AM

The current low ebb of the lumber market will not be with us forever, I believe it is part of the cycle. Same with our overly muscular loonback, it might take a while, but it will deflate again, probably once the 'merican economy get's its' strength back. Unfortunately, 'Dubya has another year in office, and I fear that the yankee economy may stay depressed until well after he has left the building.
metalman.

Posted by: Andyfreeze on November 9 2007 9:24 AM

When you are a billionare,tax loss can be a bonus!

Posted by: Howrd_B_Stern on November 9 2007 9:26 AM

Wow, like Jimmy Pattison needs to own more. Must be a great tax write off for him by buying a sinking ship.

Posted by: zoom on November 9 2007 10:17 AM

Billionaires do not become billionaires because of tax losses or buying into losing propositions, they become billionaires by buying into things when they look the worst and do what they can do to right the ship. FYI, 80% of the shares are owned by a group of 5, of which all are astute, successful business minds.

Posted by: zoom on November 9 2007 10:32 AM

my mistake only 66.2% of the CFP shares are owned by the top group of 5

Posted by: thereasonableman on November 9 2007 10:42 AM

Canfor announced record profits, shares were trading around $17 - $18. How does an executive member of Canfor make money ?

You sell high, drive the value of the shares down, and buy back in again. Then, you build the company back up again and sell when the price is high. Do it all over again.

Posted by: northman on November 9 2007 11:00 AM

I dont think Pattison does it for $$ anymore its more about how much he can control. He has enough money to live well beyond his means and his heirs are set well beyond their means also when he dies.

Posted by: zoom on November 9 2007 11:24 AM

Reasonableman, can you please elaborate as to how the executive controls international currency, pine beetle, and worldwide lumber prices? These are the things that are determining the value of the company, as these are some of the factors effecting the companies earning at this point.

Posted by: redneck on November 9 2007 4:17 PM

This is just a game to old Jimmy.He likes to play the game.It's what he lives for

Posted by: louel on November 9 2007 7:30 PM

When the American housing turns around around mid to late 2009 Canfor shares will be $17+ again. It's not going broke owners have very deep pockets. The shares are presently very undervalued, a $10,000 investment now will return 200 to 300% on your money in 2 to 3 years is a great investment.
My favorite quote from Jim Pattisson: "Life is a game, Money is the score card on how well you play it"

Posted by: socredible on November 9 2007 10:03 PM

"...More, more, more! Howd'ya like it? Howd'ya like it? More, more, more!" Appropriate theme song for Jimmy.
HE might "like it". When WE see what's coming, WE won't.

Posted by: thereasonableman on November 10 2007 12:19 AM

"Reasonableman, can you please elaborate as to how the executive controls international currency, pine beetle, and worldwide lumber prices?"

No. Because I never said they did.

They did, however, saturate the market with product... among other strategic moves.

Posted by: socredible on November 10 2007 8:28 AM

Here's a piece of advice from a guy of Jimmy's ilk. One who ultimately ruined more good businesses and caused more people that depended on them needless misery in his insatiable quest for whatever it is that drives such people than even Jimmy has. So far. The late Sir James Goldsmith, international 'corporate raider' extraordinare:- "When you can SEE the bandwagon, it's already too late."

Posted by: pulpworker on November 10 2007 10:52 AM

read "Jimmy Pattison capitalist superstar" and see how Jimmy milked hundreds of millions from all of us under the guise of "running expo 86 for free".