Quebecor Rejects R. R. Donnelley's Latest Offer

Catalog printer Quebecor World has turned down a second offer by printing conglomerate R. R. Donnelley to purchase the company from bankruptcy.

In a letter to Quebecor lead director Alain Rheaume and president/CEO Jacques Mallette filed with the U.S. Securities and Exchange Commission on June 8, R. R. Donnelley offered to acquire the printer for $1.135 billion in cash and 30 million shares of common stock valued at $415.8 million.

R. R. Donnelley also offered to assume sponsorship of Quebecor's pension plan, according to the letter.

In its amended disclosure statement filed with the U.S. Bankruptcy Court Southern District of New York, Quebecor said its own restructuring plan was less of a risk than R.R. Donnelley's offer.

Last month, Quebecor turned down R.R. Donnelley's offer of $957 million in cash and 30 million shares, valued then at $394.2 million.

R. R. Donnelley president/CEO Thomas J. Quinlan III said its latest offer is "significantly more favorable to the creditors of the Quebecor debtors than the stand-alone restructuring proposed by the current draft plans of reorganization."

Quebecor World said in a press release issued June 9 that it would proceed with its plan to emerge from Chapter 11 by mid-July. Quebecor World's debtor-in-possession financing under Chapter 11 expires on July 21.