Abitibi and Bowater merge to form AbitibiBowater

By Lisa Kerner

Charlotte, N.C., Oct. 29 - The merger of equals between Abitibi-Consolidated Inc. and Bowater Inc. is complete, resulting in the formation of AbitibiBowater, Inc., the third-largest publicly traded paper and forest products company in North America, the companies announced on Monday.

Montreal-based AbitibiBowater now trades on the New York Stock Exchange and Toronto Stock Exchange under the ticker symbol "ABH."

As previously reported, under the Jan. 29, 2007 merger agreement, each common share of Abitibi-Consolidated will be exchanged for 0.06261 of a common share of the combined company. Each Bowater common share will be exchanged for 0.52 of a common share of AbitibiBowater.

"By combining Abitibi-Consolidated and Bowater, we have created a global leader that is well positioned to compete in an increasingly challenging global market," AbitibiBowater executive chairman John W. Weaver said in a company news release.

"We look forward to drawing on the best practices from both organizations and on the strengths of a proven management team to deliver greater value to our stockholders, customers, employees and other stakeholders."

In connection with the closing, Bowater subsidiary Bowater Canada Inc. amended its articles and changed its name to AbitibiBowater Canada Inc. The company's new exchangeable shares are now traded on the Toronto Stock Exchange on a post-consolidation basis under the symbol "AXB" and are exchangeable on a one-for-one basis for shares of AbitibiBowater common stock.

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