New book by Larry Connors Click here Improve your trading - See how
Chicago-based R. R. Donnelley is a competitor of Quebecor World's in the commercial printing business. The prospective buyer said in a letter that it believed the terms of its offer were better than those proposed in Quebecor World's own restructuring plan.
'Quebecor World and R. R. Donnelley have long represented a strong strategic fit with one another and, through this proposal, we have the opportunity to join them together in a way that greatly benefits stakeholders of both companies, including Quebecor World's debtors and their creditors,' said Thomas J. Quinlan III, R. R. Donnelley's president and chief executive officer, in a statement.
R. R. Donnelley's offer includes $957 million in cash and 30 million shares of common stock, valued at $394.2 million, based on the closing trading price on May 11.
In a letter from Quinlan to Quebecor World management, Quinlan mentions that R. R. Donnelley in August 2008 expressed interest in making a deal with Quebecor World, but did not receive a response then.
Montreal-based Quebecor World said Wednesday its board of directors is reviewing R. R. Donnelley's unsolicited offer. But it also said it would continue with planned court hearings in Canada and the United States related to its restructuring. Quebecor World has indicated it expected to emerge from bankruptcy this summer.
Quinlan in his letter acknowledges the work Quebecor World had put into preparing its restructuring plans, but adds 'we only learned of the plans' terms upon publication and, in light of those terms, we would like to submit another approach for your consideration as you weigh the options available to you to propose the best possible plan of reorganization for the Quebecor debtors and their creditors.'
Kevin Clarke, who is president of Quebecor World's Publishing Services Group and locally based, declined to comment on how a sale might affect the George Urban Boulevard plant. With 604 employees, the site is a major local manufacturing employer, making products such as paperback books, and has installed new presses and equipment to modernize its operations.
A spokesman for R. R. Donnelley did not return a call to comment on the company's plans for Quebecor World's plants.
The Depew plant became part of Quebecor World in 1993. The parent company filed for bankruptcy protection in the United States and Canada in early 2008.
R. R. Donnelley in the first quarter reported a 92 percent drop in profits from a year earlier, to $13.9 million.
R. R. Donnelley used to have a Buffalo Niagara presence through its Moore Wallace plant in the City of Tonawanda, but closed it in 2004.
To see more of The Buffalo News, N.Y., or to subscribe to the newspaper, go to http://www.buffalonews.com. Copyright (c) 2009, The Buffalo News, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
