Creditors sell stake in Abitibi p.

By: Editorial Staff A 61% STAKE in Abitibi-Price Inc. that secured bank loans to the news-print giant's bankrupt corporate parent, Olympia & York Developments Ltd., will be sold in Canada only through an underwriting group for $886.2 million (Canadian) in partial repayment of the loans.
The Wall Street Journal reported that the banks will benefit in the secondary share offering from a more than 50% increase in Abitibi's share price during the past three months.
Abitibi is among the half dozen or more suppliers seeking to raise news-print prices by reducing current discounts by seven percentage points as of March 1.
In recent correspondence, newsprint marketing division president Edmund Hughes said Abitibi will hold to the effective price hike in the belief that current "transaction prices are not adequate to sustain the long-term viability" of the newsprint industry.


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