International Paper Signs Letter of I...

International Paper Signs Letter of Intent to Explore xpedx, Unisource

There are 3 comments on the Printing Impressions story from Apr 22, 2013, titled International Paper Signs Letter of Intent to Explore xpedx, Unisource. In it, Printing Impressions reports that:

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.

Join the discussion below, or Read more at Printing Impressions.

retired RED GUY

Mokena, IL

#1 Apr 22, 2013
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

#2 Jul 12, 2013
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

#3 Aug 5, 2013
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.

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