RR Donnelley informed its shareholders yesterday that it had submitted a written indication of interest to acquire "all or substantially all" of Quebecor World's assets and properties from the company's debtors.

Thomas J Quinlan III, president and chief executive of RR Donnelley, told investors that the two businesses had "long represented a strong strategic fit" and that the proposal would greatly benefit stakeholders of both companies.

He added: "Our offer would significantly enhance our ability to provide customers more comprehensive end-to-end printing solutions, expand our geographic reach into the important Canadian market and better balance our capacity with customer demand."

RR Donnelley offered Quebecor World's debtors $957m in cash, including cash on balance sheet ($257m) and a cash amount equal to that contemplated for distribution under Quebecor's restructuring plans ($700m), as well as 15% of RR Donnelley's outstanding shares (totalling 30m shares, valued at $394.2m based on the closing trading price on 11 May).

The US-based print giant said in its letter to Quebecor World's board that it believed its offer was "superior" for the company, its debtors and creditors to the restructuring proposed by its Canadian-based rival with respect to its bankruptcy proceedings.

RR Donnelley added that it was "prepared to move expediently to a legally binding purchase agreement, pending the completion of due diligence".

See also:
RR Donnelley sees Q1 profits plummet by 90%
RR Donnelley's GDS to raise transactional fee