Merrill Lynch Expects Paper Price Increases

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By: E&P Staff Merrill Lynch released a report on Thursday stating it has been fielding many questions regarding potential buyers for Hollinger's properties-mostly the Chicago Sun-Times and the Daily Telegraph in London. The investment firm confirms in the report that it "does not think that the companies it follows will make a bid."

As for other industry happenings, Merrill Lynch noted that the ongoing labor negotiations at Abitibi -- the largest producer of newsprint in North America -- could have a potential downside for newsprint prices. However, Abitibi did not go with a $50/ton price increase and instead went with $35/ton. Merrill Lynch expects a partial increase will go through in Q2 with a follow-up increase later in the year.

For the past week, the S&P rose 2.4%. Newspaper stocks gained 2% and printing stocks grew 2.2%.

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