Donnelley Makes New Pitch for Quebecor  

By Jim Milliot -- Publishers Weekly, 6/9/2009 3:04:00 PM

With Quebecor creditors set to vote on the printer’s reorganization plan June 18, R.R. Donnelley has upped its unsolicited offer for the company. Donnelley’s new offer is worth over $1.5 billion, up from its original bid valued at about $1.3 billion. The company has increased its cash offer from $700 million to $800 million and will continue to add in cash on Quebecor’s balance sheet, which has increased by $78 million. Although Donnelley is still offering 30 million Donnelley shares, the value of those share has risen by $21.6 million since its May proposal. In addition, Donnelley will assume “significant” pension liabilities.

In its letter to Quebecor outlining its revised proposal, Donnelley said the new offer addresses concerns raised by Quebecor, and, in Donnelley’s view, provides a better option for creditors than Quebecor’s reorganization plan. Despite the revised offer, Quebecor said it plans to g ahead with the June 18 vote and said it is proceeding along a timetable that will have it exit from bankruptcy in mid-July. The date to object to the reorganization plan is June 19 and a confirmation hearing is set for June 30.