Friday, 25 January 2008

QW sale urged

Quebecor Inc. should sever all ties to the sinking Quebecor World subsidiary and focus on its thriving Quebecor Media empire, says a Canadian Press story in the London Free Press.

Quoting industry observers, CP's story says investors are hesitant to invest in Quebecor Inc. over concerns it will sink money into the once dominant global printing business, now in the shadow of bankruptcy protection.

The CP story says:

"The media side has a very positive outlook, it's doing quite well and Quebecor World wasn't that big of a deal to Quebecor Inc. anymore," said one analyst who requested anonymity.

"Once I know they're not going to put money in, my comfort level grows," said a second analyst, who added cutting ties would allow Quebecor Inc. to focus on its core business without distraction.

"The best outcome could be strong indication from (Quebecor Inc. chief executive) Pierre Karl Peladeau that Quebecor Inc. is no longer going to be involved in supporting Quebecor World."

The CP story was reduced to a Sun Flash on the Toronto Sun's web site.

The question is, does PKP have the business savvy to abandon Quebecor World, which was founded by his late father, and concentrate on Canada's largest media conglomerate?

Quebecor Media, with its newspapers, Sun TV, cable,, cellphones etc., should be enough to keep PKP occupied until he retires.

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