International Paper Signs Letter of Intent to Explore xpedx, Unisource

Apr 22, 2013 | Posted by: roboblogger | Full story: Printing Impressions

April 22, 2013 - International Paper announced today it is in talks with Unisource regarding a proposed business combination of xpedx, International Paper's distribution business, and Unisource.

Comments

Showing posts 1 - 3 of3
retired RED GUY

New Lenox, IL

|
Report Abuse
|
Judge it!
|
#1
Apr 22, 2013
 

Judged:

1

Unisource and XpedX are toast!!! two companies will merge bain and IP will unload their Debt . the new company XuniX will be publicly traded..3% return on a whole not good enough fo9r the market will open in high 50's with in 9 months $2.00 a share..after 12-18 months they will be gone.......
TT PURR

United States

|
Report Abuse
|
Judge it!
|
#2
Jul 12, 2013
 

Judged:

1

retired RED GUY wrote:
Unisource and XpedX are toast!!! two companies will merge bain and IP will unload their Debt . the new company XuniX will be publicly traded..3% return on a whole not good enough fo9r the market will open in high 50's with in 9 months $2.00 a share..after 12-18 months they will be gone.......
We'll see how wrong you are in 12-18 months after the merger when the new company will hold 30% of the industry business
former Unisource employee

Washington, DC

|
Report Abuse
|
Judge it!
|
#3
Aug 5, 2013
 

Judged:

1

TT PURR wrote:
<quoted text> We'll see how wrong you are in 12-18 months after the merger when the new company will hold 30% of the industry business
I don't agree entirely with the other post noting that the merged company will be gone in under 2 years, but I don't see how anything you posted in this comment disputes what he said. Just because a company holds a large percentage of the market's business doesn't mean the company is going to be successful. Both Unisource and Xpedx already hold significant chunks of the industry business and yet both entities are struggling. The fact that they are consolidating via a reverse morris trust tells you most of what you need to know. The reverse morris trust allows for IP to jettison Xpedx without taking a huge tax hit through a sale. Instead, they suffer no tax consequences if the reverse morris trust is done correctly and they will force xpedx to assume debt on their behalf, thereby obtaining value for their loss. On an even more basic level, IP is not getting rid of Xpedx because it believes in Xpedx's future or in the future of the paper/facility supply market place. It is getting rid of Xpedx because it is tired of Xpedx losing money. Unisource is in the same boat. Year after year, their revenues are decreasing as the market for paper products continues to decrease. As I mentioned earlier, combining two failing companies is not going to make one successful company on market share alone. I wish the best of luck to their employees, they're going to need it through the rocky ride of the next few years.

Tell me when this thread is updated: (Registration is not required)

Add to my Tracker Send me an email

Showing posts 1 - 3 of3
Type in your comments below
Name
(appears on your post)
Comments
Characters left: 4000
Type the numbers you see in the image on the right:

Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Other Recent Construction Discussions

Search the Construction Forum:
Topic Updated Last By Comments
CEOs as government saviors: Boom or bust? 3 hr cancer suxs 9
Obama, Wall Street Agree On Immigration, Says W... Jul 11 Amigo 1
Jacobs Engineering Group Inc. Reports Record Ea... (Nov '06) Jul 10 Fortunate 13
Past problems haunt Centex (Nov '06) Jul 9 Unhappy Home Buyer 124
U.S. Steel departing S&P 500, bumped by Martin ... Jul 5 1005 Proud 1
Walgreens may be next to 'move' overseas Jul 1 Jeff Brightone 1
Homebuilder Stock Losers: KB, Pulte (Jun '10) Jun 30 PULTE is a RICO 2
•••
•••