Donnelley Ends Quebecor Chase
Quebecor to move ahead with reorganization plan.
After having its latest, $1.82 billion bid to buy Quebecor World rejected by that companyâ€™s board, R.R. Donnelley said Wednesday that it would no longer pursue an acquisition of the fellow magazine printer.
The official end of Donnelleyâ€™s pursuit effectively means Quebecor will remain a standalone company, and that Quebecor will move ahead with its reorganization plan.
â€śWe believe that our proposal was undoubtedly in the best interests of creditors based on a comparison of the distributions under our proposal with the distributions under the proposed stand-alone plan of reorganization,â€ťÂ Thomas Quinlan, Donnelleyâ€™s president and chief executive, said in a statement. â€śWe are particularly disappointed because of the efforts and concessions made by us to adapt our proposal in response to concerns that were communicated to us.â€ť
Last month, Donnelley sent an unsolicited letter to Quebecor expressing its interest to buy the company for about $1.35 billion. On Monday Donnelley sent another letter to Quebecor, increasing its original offer to roughly $1.82 billionâ€”about $476 million more cash than QWâ€™s reorganization plan calls for.
Quebecorâ€™s board of directors felt the deal would trigger a lengthy antitrust review, which could delay its creditors from receiving the cash that would come to them as part of the restructuring.
â€śThis would have been an excellent fit for [us] and the best opportunity for the Quebecor World creditors,â€ť Quinlan said. â€śHowever, given our view of the Quebecor World operations, a transaction ascribing a higher value to Quebecor World than we offered in our last proposal is simply not in the interests of RR Donnelley.â€ť
Donnelley, he said, will continue â€śto pursue other strategic initiatives.â€ť