RR Donnelley Eyes Bankrupt Quebecor World

As of December 31, 2008, RRD had just $331 million in cash on hand and $3.2 billion in long-term debt, plus $1.2 billion in other long-term liabilities. It saw its first quarter net profits plunge 92 percent year-over-year.

Such a combination of printing conglomerates would have two notable impacts. It would provide Donnelley much stronger pricing power in its major footholds. But it would also trigger an integration bloodbath that would entail plant consolidations and layoffs of thousands of employees, with some placing estimates at 7,000 to 10,000 job cuts.