Quebecor World's sale of European business falls through

Worse and worse. Giant multinational printer Quebecor World, controlled by Quebecor Inc., which is also is the largest magazine publisher in Quebec, saw its shares plunge more than 30 per cent on Thursday when it announced that its sale of its European printing business to a Dutch company had fallen through. Quebecor World shares dropped 79 cents to $1.47 on the Toronto Stock Exchange. A year ago, it was in the $17 range.

According to a Reuters report, shareholders of the Dutch group Roto Smeets de Boer had rejected the $341 million purchase of the Canadian printer's money-losing European business.

The setback will only exacerbate Quebecor World's struggle over liquidity. Last month QW withdrew a refinancing plan and it had also suspended dividends on two series of its preferred shares.

For background, see earlier posts.