RR Donnelley Likely Exploring an LBO

Taking Donnelley private could have a starting price of around $11 billion, an anonymous source told the Chicago Tribune.

Doug Fitzgerald, senior vice president of marketing for RR Donnelley, said the company had no comment on the LBO rumors.

Gimme Credit analyst Dave Novosel, in a recent report, believes the company lacks the kind of free-flow cash leveraged buyers look for to lower debt incurred in buyouts, nor does it have meaningful convertible assets to finance an LBO.