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Wed September 5, 2012
Verso done with merger talks
MEMPHIS, TN-- Verso Paper says it will no longer discuss a potential merger with NewPage Corporation.
Talks of a business combination began in 2010, then NewPage entered Chapter 11 bankruptcy in September of last year. Verso offered NewPage a total of $1.425 billion in stock, cash, and first-lien notes in May, but NewPage declined.
Verso officials have expressed frustration at the lack of progress in discussions, saying its proposal is the “most sensible.” NewPage officials say the plan contained “significant downside risks.”
In a release Tuesday Verso said it will cease further discussions with NewPage. CEO David Paterson said it’s in the best interests of his company to focus on Verso’s many other opportunities.