Quebecor World declines RR Donnelley's offers
Ailing printing company Quebecor World has rejected RR Donnelley & Sons latest offer to acquire the ailing printing company and has, instead, decided to proceed with a reorganization plan currently underway as a result of bankruptcy proceedings. Quebecor World has said it could emerge from creditor protection by mid-July.In a document related to the bankruptcy proceedings and made available to the press, Quebecor said: “the consummation of the [reorganization] plan… presents fewer risks to completion than would the transactions proposed by [RR Donnelley] in the latest indication of interest.”
RR Donnelley first expressed its interest in acquiring Quebecor World in May, offering to pay Quebecor debtors approximately $957 million cash and 30 million shares. According to Quebecor documents, on June 2, it received a revised offer that in addition to the original sum, RR Donnelley proposed to assume certain liabilities and to be responsible for 50% of the costs that would be incurred by Quebecor World to extend its debtor-in-possession facility in order to complete the deal with RR Donnelley.
When that offer was declined, on June 8, RR Donnelley made another offer, this time increasing its cash offer by $100 million. This is the most recent offer that Quebecor World has declined.
