MERC is a very cheap company, but its small size and wide geographical dispersion make a takeover very unlikely. It's very hard to imagine that all three plants would fit into an acquirer's plans. It's equally hard to imagine that MERC management would be willing to sell only the German or only the Canadian assets and go forward with the remainder as an even smaller company.
Keep in mind that Temple Inland's plants are concentrated in the U.S. and Mexico, within a few hours of any IP executive or senior engineer, with no jet lag.
I like MERC the way it is and believe in the company's future. As debt gets paid down, look for acquisitions, not a takeover.
"...As debt gets paid down, look for acquisitions, not a takeover."
A key observation, and part of the reason I'm here: Even if NBSK prices moderate over the next few years, this stock should perform well due to the gradual improvement in the balance sheet alone. In fact, that could be the greatest catalyst we have in an uncertain world. And it goes unappreciated - for now. But will be reflected in future stock price as long as they stick to plan. This is one catalyst that requires patience.