Wednesday, June 10, 2009

R.R. Donnelley ups bid for Quebecor World

U.S. printing company R.R. Donnelley & Sons. Co. of Chicago has increased its offer for competitor Quebecor World, a filing with U.S. regulators shows.

Donnelley, which originally bid $1.3 billion US for Montreal-based Quebecor, has added about $200 million in cash and stock to its offer and "confirmed our intention to assume significant pension liabilities," it said in a letter to Quebecor World.

Quebecor World is restructuring in creditor protection.

The letter said Quebecor World or its creditors had raised questions about the offer, which Donnelley sought to address in the letter.

It was the second revision of its original May 12 offer.

The letter, from Donnelley president and CEO Thomas J. Quinlan III to Quebecor World lead director Alain Rhéaume and president and CEO Jacques Mallette, said the proposed deal is "significantly more favorable … than the stand-alone restructuring proposed by the current draft plans of reorganization."