Abitibi Makes an Offer for Rival Avenor

Abitibi-Consolidated Inc., the world’s largest newsprint producer, announced an unsolicited takeover offer worth about $1.4 billion for rival Avenor Inc., which denounced the bid as “grossly inadequate.” Montreal-based Avenor, the world’s fourth-largest newsprint maker, said it plans to explore all options for its business, including Abitibi’s bid, and issue a report to its shareholders. Toronto-based Abitibi, created by the merger of Abitibi-Price Inc. and Stone-Consolidated Corp. last year, said it wants to continue expanding. Abitibi is making the bid as newsprint producers seek acquisitions to boost profits in the slow-growing industry.