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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Newsprint Companies Move Toward Merger

Compiled From Wire Services

Boise Cascade Corp. has taken another step toward getting out of the newsprint business that could return $325 million to the company.

Its newsprint affiliate, Rainy River Forest Products, has agreed to combine with the newsprint business of Stone Container Corp., called Stone-Consolidated Corp.

Through a complicated stock transaction, the two companies would become a new newsprint company with nearly twice the production capacity of Rainy River, Boise Cascade spokesman Vince Hannity said Thursday.

Boise Cascade owns 60 percent of Rainy River’s stock, which will be converted to stock in the new company. Then Boise Cascade will sell most of it, netting about $325 million. Afterward, Boise Cascade will own 7 percent of the new company.

The deal is subject to approval by shareholders of Rainy River and Stone-Consolidated, and by the Superior Court of the Province of Quebec.