quebecor world

quebecor world

Printing services provider R.R. Donnelley & Sons Co (RRD.N) said it offered to buy the assets and properties of Quebecor World (IQW.TO) for about $1.35 billion in a cash and stock deal to expand into Canada.

RR Donnelley said it will pay the insolvent commercial printer's debtors about $957 million in cash, and 30 million of its shares, valued at $394.2 million, based on Monday's close of $13.14.

The transaction, which is expected to add to RR Donnelley earnings within 12 months of combined operations, is not subject to any financing condition and no shareholder approval is required, the company said in a statement.

Montreal-based Quebecor, a big commercial printer hoping to emerge from bankruptcy protection this summer, prints products including books, magazines, directories and advertising materials.

The company, which filed for bankruptcy protection in January 2008, said last week it had filed an amended plan of reorganization for its U.S. subsidiaries currently subject to Chapter 11 proceedings.

"We believe that the proposed transaction set out in this letter is superior for the Quebecor debtors and their creditors to the restructuring proposed by the plans in their current form," Chief Executive Thomas Quinlan said in a letter to Quebecor management.

RR Donnelley shares closed at $12.99 on Tuesday on the New York Stock Exchange.