Eastman Kodak Buys Out KPG, Nears Deal to Acquire Creo

Kodak will redeem all of Sun Chemical's shares in KPG for $317 million in cash at closing, $200 million in cash in the third quarter of 2006, and $50 million in cash annually from 2008 through 2013. The transaction is expected to close in April.

The pending Creo acquisition, at a cash price of $16.50 per share, ends months of speculation regarding the future of the Vancouver-based company. A small group of dissident shareholders led by former Moore Corp. CEO Robert Burton had sought to gain control of Creo during this month's originally scheduled annual and special meeting. Following the Kodak agreement, the dissident group declared that its objectives had been met and announced it would discontinue efforts to take over the firm.