High Liner confirmed as 4th suitor for FPI assets

Fishery Products International has confirmed Nova Scotia-based High Liner Foods has entered the bidding for FPI's assets.

In a statement issued Monday, St. John's-based FPI said High Liner joins three other previously announced bidders the Barry Group, Ocean Choice and a team formed by FPI managers for various assets.

FPI's management team confirmed last week it was entertaining offers for its various assets, including its plants, ships, quotas and marketing divisions.

"While there is no certainty with respect to the outcome of any related discussions, FPI maintains its policy of exploring all economically viable options for its operations," FPI said inits statement.

High Liner said it is interested in value-added aspects of FPI's business, including Ocean Cuisine, its lucrative U.S.-based marketing division. FPI had tried, but failed, to launch Ocean Cuisine as an income trust.

High Liner is also pursuing FPI's secondary processing plants in Burin, on Newfoundland's south coast, and in Danvers, Mass.

Earle McCurdy, president of the Fish, Food and Allied Workers union, welcomes High Liner's pitch.

"Quite frankly, I think it's a pretty good fit there," McCurdy told CBC News Monday.

"High Liner is a substantial company. That's a pretty tough business now, and there's no question there would be some efficiencies associated with combining the High Liner and FPI businesses."

The other bidders are interested in FPI's groundfish and shellfish operations. The groundfish plants have been idle for months, in part because of a standoff between the company and its unionized workers over a wage rollback that the company has to date failed to secure.

FPI, meanwhile,has hired a consulting company to help determine its choices.

The Newfoundland and Labrador government has served notice that sales of assets will not proceed if it does not approve of the terms.

The government has the right to block the sales under the FPI Act, legislation created to govern the former provincial Crown corporation.

John Risley, a principal investor in FPI, said Friday that current management had decided to sell assets because of problems with labour costs, currency exchange and other factors.