32-570: Abitibi Consolidated Inc. was a Canadian pulp and paper company based in Montreal , Quebec . Abitibi-Consolidated was formed from the merger of Abitibi-Price Inc. and Stone Consolidated Corp. on May 29, 1997; the Company merged with Bowater in 2007 to form AbitibiBowater . A network of 19 paper mills, 20 sawmills, 4 remanufacturing facilities and 2 engineered wood facilities, located in Canada,
64-440: A company they perceive as possibly lacking liquidity. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price for which the share is traded unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus,
96-401: A long period of time after maturity into a profitable company. However, from 1997 to 2012, the number of corporations publicly traded on US stock exchanges dropped 45%. According to one observer ( Gerald F. Davis ), "public corporations have become less concentrated, less integrated, less interconnected at the top, shorter lived, less remunerative for average investors, and less prevalent since
128-730: A major force in the North American newsprint business but the Great Depression forced the company to file for bankruptcy protection on September 10, 1932. A Royal commission was held to enquire into the company's affairs, with its report issued in March 1941. It remained under the control of the Court-appointed Receiver until 1946, the longest such receivership in Canadian history. Emerging from bankruptcy,
160-597: A mill in Bathurst, New Brunswick in 1914. Majority control of the company was obtained in the late 1930s by Arthur J. Nesbitt and his partner Peter A. T. Thomson through their holding company , Power Corporation of Canada . In the early 1960s, Power Corporation bought the Consolidated Paper Company. When Paul Desmarais acquired control of Power Corporation in 1968, the two companies were merged to become Consolidated-Bathurst Inc., which, in 1989,
192-553: A separate entity, its former shareholders receiving compensation in the form of either cash, shares in the purchasing company or a combination of both. When the compensation is primarily shares then the deal is often considered a merger . Subsidiaries and joint ventures can also be created de novo . That often happens in the financial sector. Subsidiaries and joint ventures of publicly traded companies are not generally considered to be privately held companies (even though they themselves are not publicly traded) and are generally subject to
224-523: A stock exchange ( listed company ), which facilitates the trade of shares, or not ( unlisted public company ). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are private enterprises in the private sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states and so have associations and formal designations, which are distinct and separate in
256-408: Is privately held can buy out the shareholders of a public company, taking the company off the public markets. That is typically done through a leveraged buyout and occurs when the buyers believe the securities have been undervalued by investors. In some cases, public companies that are in severe financial distress may also approach a private company or companies to take over ownership and management of
288-404: Is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company
320-576: The Price Brothers made it the world's biggest newsprint producer. In 1979, the corporate name was changed to Abitibi-Price Inc. and in 1981 it was taken over by Olympia and York Developments Ltd . In 1982, Abitibi-Price bought out the Hilroy companies, whose founder, Roy Hill, had been a member of the Abitibi board of directors and had died in 1978. With the purchase of Hilroy, Abitibi-Price became
352-538: The United States and the United Kingdom, supplied publishers, printers, building products distributors and housing manufacturers in over 70 countries. It had approximately 12,500 employees. A global leader in newsprint , commercial printing papers and wood products, the Company saw combined revenues of $ 4.85 billion in 2006. Number one in Canada in terms of total certified woodlands, Abitibi-Consolidated
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#1732797723834384-511: The United States, companies with over 500 shareholders in some instances are required to report under the Securities Exchange Act of 1934 ; companies that report under the 1934 Act are generally deemed public companies. A public company possess some advantages over privately held businesses. Many stock exchanges require that publicly traded companies have their accounts regularly audited by outside auditors and then publish
416-470: The accounts to their shareholders. Besides the cost, that may make useful information available to competitors. Various other annual and quarterly reports are also required by law. In the United States, the Sarbanes–Oxley Act imposes additional requirements. The requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and
448-666: The company name was changed to Abitibi Power and Paper Co. Ltd. to reflect the power generation business it created through the need to build a dam to generate electricity for its mill. The company expanded to other locations in Ontario where it also built dams and operated hydro electric power stations. Wherever the company built a mill, a new town sprang up around it and it even built radio stations such as CFCH in Iroquois Falls to serve these remote new communities. The company acquired other small lumber operations and grew to become
480-747: The company prospered in the post- World War II industrial boom and in 1965 changed its name to the Abitibi Paper Company Ltd. In 1974, Abitibi purchased a controlling interest in the Price Brothers & Company Limited which had extensive operations in the Province of Quebec and whose vast forestry business dated back to the William Price Company established in Quebec City in 1820. The merger of Abitibi and
512-432: The company. One way of doing so would be to make a rights issue designed to enable the new investor to acquire a supermajority . With a supermajority, the company could then be relisted, or privatized. Alternatively, a publicly traded company may be purchased by one or more other publicly traded companies, with the target company becoming either a subsidiary or joint venture of the purchaser(s), or ceasing to exist as
544-422: The core of international law disputes with regard to industry and trade. Usually, the securities of a publicly traded company are owned by many investors while the shares of a privately held company are owned by relatively few shareholders. A company with many shareholders is not necessarily a publicly traded company. Conversely, a publicly traded company typically (but not necessarily) has many shareholders. In
576-451: The death of Price Sr sons William Evan Price and Evans John Price took over and the firm became Price Brothers and Company Limited . In 1910 the company became Price Brothers Limited as (Sir) William Price III took control of the family firm. After Sir William's death in 1924, his sons John Herbert and Arthur Clifford Price assumed control. In the 1930s the Price family lost control and
608-829: The eighth largest in the world. Following the merger, Abitibi-Consolidated was rated B1, B+ and B+ by Moody's , Standard & Poor's and Fitch Ratings respectively. Pulp and paper industry in Canada The pulp and paper industry in Canada is one of the country's most important and profitable industries. . It is especially concentrated in Ontario and Quebec and plays an important role in many other provinces. . The leading forest and paper products companies in Canada in net sales in 2012 were: In 2000, Canadian pulp, paper and paperboard companies had operating expenses of C$ 425.4 million on environmental protection with
640-472: The firm was sold. Price Brothers and Company was renamed Price Limited in 1966 and was acquired by Abitibi Power and Paper Co. and became Abitibi-Price in 1974. When Abitibi-Price became Abitibi-Consolidated in 1997, the Price name finally disappeared. Abitibi Pulp and Paper Co. Ltd. was founded in 1912 at Iroquois Falls, Ontario on the Abitibi River by Frank Harris Anson . The following February,
672-444: The firm's stock. For many years, newly-created companies were privately held but held initial public offering to become publicly traded company or to be acquired by another company if they became larger and more profitable or had promising prospects. More infrequently, some companies such as the investment banking firm Goldman Sachs and the logistics services provider United Parcel Service (UPS) chose to remain privately held for
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#1732797723834704-464: The majority ($ 263.3 million) used for pollution abatement. Capital expenditures totalled $ 234.8 million, with over half ($ 140.4 million) being spent on pollution prevention processes. [1] Public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on
736-425: The number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization
768-729: The original founders or owners may lose benefits and control. The principal–agent problem , or the agency problem is a key weakness of public companies. The separation of a company's ownership and control is especially prevalent in such countries as the United Kingdom and the United States. In the United States, the Securities and Exchange Commission requires firms whose stock is traded publicly to report their major shareholders each year. The reports identify all institutional shareholders (primarily firms that own stock in other companies), all company officials who own shares in their firm, and all individuals or institutions owning more than 5% of
800-572: The polity in which they reside. In the United States , for example, a public company is usually a type of corporation though a corporation need not be a public company. In the United Kingdom , it is usually a public limited company (plc). In France , it is a société anonyme (SA). In Germany , it is an Aktiengesellschaft (AG). While the general idea of a public company may be similar, differences are meaningful and are at
832-502: The premiere vertically-integrated supplier of office stationery in the Canadian market. The collapse of Olympia and York in 1992 resulted in the consortium of banks being forced to take control of Abitibi-Price Inc. for a short time until they sold it through a public share issue in 1994. The share issue also entailed the divestment and sale of Hilroy to the Mead Corporation . The Bathurst Power and Paper Company Ltd. built
864-497: The price per share. For example, a company with two million shares outstanding and a price per share of US$ 40 has a market capitalization of US$ 80 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. Low trading volume can cause artificially low prices for securities, due to investors being apprehensive of investing in
896-446: The same reporting requirements as publicly traded companies. Finally, shares in subsidiaries and joint ventures can be (re)-offered to the public at any time. Firms that are sold in this manner are called spin-outs . Most industrialized jurisdictions have enacted laws and regulations that detail the steps that prospective owners (public or private) must undertake if they wish to take over a publicly traded corporation. That often entails
928-428: The turn of the 21st century". Davis argues that technological changes such as the decline in price and increasing power, quality and flexibility of computer numerical control machines and newer digitally enabled tools such as 3D printing will lead to smaller and more local organization of production. In corporate privatization, more often called " going private ," a group of private investors or another company that
960-409: The would-be buyer(s) making a formal offer for each share of the company to shareholders. The shares of a publicly traded company are often traded on a stock exchange . The value or "size" of a company is called its market capitalization , a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times
992-558: Was also one of the largest recyclers of newspapers and magazines, serving 21 metropolitan areas in North America and the United Kingdom. In addition, the Company had significant hydroelectric generating assets in eastern Canada, which provided a cost advantage for the associated production facilities and was an extension into the energy sector. Price Brothers & Company Limited was a lumber firm from Quebec founded in 1820 as William Price Company by William Price . Following
Abitibi-Consolidated - Misplaced Pages Continue
1024-428: Was sold to Stone Container Corporation of Chicago, Illinois who renamed it Stone Consolidated Inc. In 2000, Abitibi-Consolidated acquired a majority shareholding in Canadian integrated forest products company Donohue Inc. On January 29, 2007, Bowater and Abitibi-Consolidated announced they would be merging to create AbitibiBowater . The merger created the third largest pulp and paper company in North America, and
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