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R.R. Donnelley & Sons Company Message Board

  • rrdonnelley rrdonnelley Oct 8, 2000 10:48 AM Flag

    Takeover vs Private vs Nothing??

    What does it really matter who of how Donnelley
    is owned? Sure, either way the share holders would
    get money, but would an ownership change REALLY
    affect what is going on in an actual division?

    Would an ownership change get new customers or
    technology not available to a public held company? NO! Could
    they charge higher prices or pay less for labor, ink
    and paper? NO!

    Unless the "new" DNY were to be
    led by another bungling fool like John Walter, how
    would ownership change impact the operation? Do you
    think the people would get smarter, or the machines run

    I would like to sell my position for $40 today, but
    look for DNY to remain public, in a 20-32 range for
    the next 5 years. Nothing will happen fast. Why
    should it?

    PS... big Mike left Galliten for more
    money and power than was available to him in DNY. (Like
    DNY should have made him a better job to keep his
    butt?) He had promotional opportunities, and was passed
    over like many others; Mike was just more ambitous and
    did something about it. Good Luck

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    • EMO = ???
      LOL = Lots of Luck or Laughing out loud.
      TLA = three letter acronym

    • What are EMO and LOL? Thanks in advance. TA = technical analysis. Don't know TLA either.

    • Thanks, Woody. And I agree with your opinion on the E-book platform. Some of these postings are starting to hit my limit, let alone a book.

      PS: TLA=three letter acronym.

    • IMO= in my opinionIHMO= in my Humble opinionDD =
      due diligance, however I have to admit that I don't
      know what TLA's areToo many years at DNY and too many
      acronyms, HEI, PVR,6sigma, ISO, BR549Not sure I remember
      English anymore!w912Quick comment about E-book, I believe
      that it's potential is limited. When DNY committed
      this to a proprietary platform I think they drove a
      nail in the coffin. I think the potential could have
      been much greater for pdf with a much greater
      installed base already in place, however I hate having to
      read much on a PC screen and I bet most people are the
      same way.

    • Okay, I'll plead ignorance... What is IMO and DD and any other TLA's some of us use?

      Sure am enjoying the postings on Rrivate? Nothing?? ETC??? Good stuff...

      Thanks, Fshmn3

    • I know Europeans, in many industries, are more
      vertically intergrated than US companies. I've read Bert
      owns print plants in Europe and probably here too. In
      the US, investors like it when companies spin off
      subs, like Lucent (at first anyway). US companies seem
      to have more horizontal and specialized operations.
      My earlier thoughts were from the perspective of a
      US investor.

      But, hey, look at oil, lots of
      vertical intergration, so bring Bert on. Your conclusion
      makes sense then.

      I've also read Bert is eying
      EMI. Some of this depends on how AOL/TWX turns out.
      I've also read TWX wants to get into e-print. But DNY
      has got have a leg up.

      The ultimate value for
      DNY as a stand alone entity, in part, IMO, depends on
      how insulated DNY e-print business is to competition,
      what DNY brings to the table in that world, how
      important e-print really is, and how it evolves. We know
      DNY is great in hard copy. Also, as some else posted,
      DNY long term value depends on what they do with cash
      flow. I know they stopped buying back stock.

    • Total debt has stayed at about $1.5 billion, + or
      - a little, last five years. More of it short term
      now. That's about 33% of market cap plus debt ratio.
      Also true market cap lower than '95, stock price down
      and less shares. But Moody's has the long term debt
      at A1 and short term at P1, investment grade, last
      downgraded in '96.

      Current cash flow includes current
      interest payments. Current debt sould'nt impact LBO that
      much. Depends on LBO price. Another post said they
      turned down $30. LBO might work at that price, but I
      think most of us are hoping for more.

      venture capital sounds the best way to go, maybe with
      employee ownership, if one wanted private

      I agree the company has to use cash flow more
      effectively. If I make a lot of $ and blow it at the track, so
      what. That's why I wonder like others how they can grow
      e-print and other services - acquisitions, etc. Will
      those work? Stream did not, but hopefully they learned

      That's also one reason I said market is
      penalizing them for Stream - past ineffective use of cash

    • 30$ 0ffer recently turned down by board----

    • Neb good input, broaden your scope to a global
      market and you'll see that Bert already prints for many
      publishers in its various printing companies around the
      world and here in the US. I don't really see that as
      much as a conflict of interest as it being an
      different perspective. I'd also susspect that Bert could
      fill the plants with quite a bit of its own business
      (Random House, G&J) and merging it with its current print
      sites would serve to build leverage, capacity, etc. An
      aquisition in that reagrd would serve better than expanding
      the current Bert owned facilities in that it would
      not creat overcapacity in the market. I may be
      rambling, but I think there is a sound business strategy to
      that scenario.

      What about rumors of a (failed?)
      mgmt buyout? comments???

    • Obviously you have done a great deal of DD on
      this and I mostly agree with your facts if not your
      conclusion as far as DNY value, however I do have to
      question whether you really consider $1B in LT debt to be
      'low'? That is approximately 33% of market cap. IMHO
      this has been the major drag on the stock price, not
      the fact that it exists but the fact that DNY has
      nothing to show for it. I think until DNY shows an
      effective use of their free cash that the p/e of this
      company will remain low.

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