U.S. printing company RR Donnelley & Sons Co. of Chicago unveiled an unsolicited $1.35 billion US bid to acquire Montreal-based Quebecor World, which is currently in creditor protection.
In a release issued late Tuesday, Donnelley said it believes its takeover bid is a better offer to the creditors of Quebecor World than the Canadian firm's restructuring plan.
Donnelley said it plans to offer Quebecor World creditors $957 million US in cash, plus 30 million common shares, which were worth $394.2 million based on their closing price on May 11.
"Quebecor World and RR 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 Quinlan III, Donnelley's president and CEO, in a release.
Quinlan said a takeover of Quebecor World would greatly expand Donnelley's reach in the Canadian market.
Quebecor World has been operating under court-ordered creditor protection since January 2008.
