Business

Quebecor Inc has signalled its intent to retain beleaguered commercial printing subsidiary Quebecor World by ruling out the possibility of an immediate sale or merger.

Despite shares in the company falling nearly 70% since the beginning of November, reports claim North America's second-largest printer has set out to maintain its 26% stake in the company.

Earlier this week, Quebecor Inc announced that despite having the available funding, it was suspending dividend payments on its Series 3 and Series 5 Preferred Shares.

This comes after it last week withdrew a refinancing plan that involved an offer of £120.68m ($250m) of common stock and £241.36m of debt in order to "to evaluate financing alternatives, including the issuance of equity and debt securities when conditions are more favourable".

The Montreal-based firm, led by president and chief executive Pierre Karl Péladeau, is reportedly pushing the banks to convert the company's £362.18m revolving credit facility into a lump sum through a term loan.

At the beginning of this month, Quebecor World sold its European operations to Dutch company Roto Smeets for £129m, creating Europe's largest print group with a £900m-plus turnover.

The acquisition included Quebecor World's Corby, Northamptonshire, site, which has recently achieved the Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) certification.