Quebecor's World of troubles continue

With Quebecor World suspending dividends on its preferred stock, the buzz around its financial troubles is becoming predictably more speculative and occasionally bizarre, with suggestions in a Reuters story

• that the value of the company's stock could conceivably plunge to zero;
• that Transcontinenental Inc., a major rival, would be a potential buyer of the book, directory and marketing businesses;
• that the Peladeau family might have to pay $6 or $7 a share to privatize the company (the stock yesterday had fallen to $2.45);
• that huge U.S. printer R.R. Donnelly might be a strategic buyer, but would have to sell other assets to get around regulatory hurdles

The giant printer is controlled by Quebecor Inc., also Quebec's largest publisher of consumer magazines. Quebecor owns 35% of Quebecor World shares and 84% of the votes. The company's stock has fallen 85% since February.

See earlier posts for background.