Donohue and Abitibi Consolidated to Form World\'s Largest Newsprint Producer

On February 11, 2000, Abitibi-Consolidated Inc. (Abitibi) announced that it had entered into agreements with Donohue Inc. and Quebecor Inc., Donohue’s controlling shareholder, pursuant to which Abitibi will offer to purchase all of the outstanding shares of Donahue in a shares-and-cash transaction which values Donahue at $7.1 billion. The agreements include the irrevocable commitment by Quebecor to tender all of its Donahue shares in favour of Abitibi’s offer.

Goodman Phillips & Vineberg are representing Abitibi on the transaction and are working with Louis Véronneau, Abitibi’s Managing Counsel, and John Chimienti of Abitibi’s legal department. The GPV team is being led by corporate and securities partner Stephen H. Halperin, and includes Maryse Bertrand, Jeffery Singer, Jodi A. Lackman and Kari MacKay (corporate and securities), Alan J. Shragie and Rhonda Rudick (tax), Hillel W. Rosen, Daniel J. Gormley and Marie-Christine Lemerise (competition). Marc Barbeau and Jean G. Lamothe of Stikeman Elliott’s Montreal Office are co-counsel to Abitibi and are advising on the bank financing associated with the acquisition. New York-based Paul, Weiss, Wharton, Rifkind & Garrison is US Counsel to Abitibi and are advising on US securities law and anti-trust matters. Donahue and Quebecor are being represented by Ogilvy Renault, where the team includes Francis R. Legault and Ava G. Yaskiel (corporate and securities), Norman M. Steinberg, Lise Bergeron and Steve Malakassiotis.