Clarke withdraws offer for Supremex after negotiations fail to agree on price

MONTREAL - Halifax-based Clarke Inc. (TSX:CKI) is no longer seeking to buy out the other shareholders of Supremex Inc. (TSX:SWP), a Canadian envelope company based in Montreal.

Supremex says a special committee of independent directors has determined that the company's board and Clarke will not be able to agree on a price.

Clarke owned 45.1 per cent of Supremex stock when it announced in March that it would pay $1.20 each for about 16 million shares that it didn't already own.

As of Friday, Supremex's pubic shares were worth $1.40 each. They dropped a penny shortly after the open, remaining above Clarke's offer price.

Clarke said it was disappointed with the discussions as it "consistently tried to reach an agreement that was both fair to Supremex shareholders and reflective of conditions in the economy generally and the envelope industry in particular."

It plans to consider its options with respect to the Supremex shares it owns, including acquiring additional shares, maintaining its current shareholding or disposing of its shares in the open market.