Abitibi-Consolidated and Quebecor have resolved their boardroom dispute after the special committee reaffirmed its support for chief executive John Weaver (PrintWeek 8 December).


The committee decided that the allegations made against Weaver by largest shareholder Quebecor were completely without foundation.


Quebecor president and chief executive Pierre-Karl Peladeau defended his campaign against Abitibi, citing several grievances.


Peladeau claimed that Abitibi had undertaken actions without the boards knowledge, ignored Donohue employees and not done enough to make it more profitable.


We cannot accept being pushed into corners and should react in unacceptable situations, said Peladeau.


Both sides have now agreed that Weaver will retain his posts as president and chief executive.


They also recommended that Abitibi director Richard Drouin should be appointed chairman, and Peladeau vice-chairman, of Abitibi.


The war of words between the two companies developed after the resignation of Abitibi chairman Michel Desbiens.
Desbiens, chief executive of Donohue before it was bought by Abitibi, became the third ex-Donohue executive to leave Abitibi, following a clash of cultures.


The backing by the special committee indicated that Quebecors statements had failed to sway the opinions of Abitibis shareholders.


Talks between the two companies continued until they found a resolution in the interests of shareholders.


Story by Andy Scott