FPI pushed into talks with Ocean Choice

The Newfoundland and Labrador government has rejected Fishery Products International's bid to sell most of its assets to its preferred suitor, Corner Brook fish processor Bill Barry.

Instead, the government wants FPI to sell to its second choice, St. John's-based Ocean Choice.

A terse statement issued by FPI on Wednesday afternoon quoted the government as saying that the Ocean Choice bid "may contain the necessary elements to satisfy the public interest."

The FPI Act— provincial legislation created to govern the former Crown corporation— gives the provincial government veto power on sale of major assets, including fish processing plants and trawlers.

St. John's-based FPI, the flagship seafood company in Newfoundland and Labrador, had been entertaining bids from several companies since January.

In February, the province said it was insisting that it wanted to review the final two bids— from the Barry Group and Ocean Choice— even though FPI had evidentlypreferred the Barry bid.

Sources say, however, that the Ocean Choice bidis not as lucrative as the Barry offer, with a variance of more than $15 million.

"There is no certainty that current discussions will result in any transactions," FPI said in a release.

"FPI maintains its policy of exploring all economically viable options for its operations."

Thegovernment has not commented publicly on how it views either of the Barry or Ocean Choicer offers.