The Globe and Mail

Quebecor World is going to pay a heavy price to rebuild its debt-heavy balance sheet.
The Montreal-based printing company saw its stock hammered yesterday after announcing a widely-expected stock sale. Quebecor World lost 20-per-cent of its value, closing at $4 on the TSX. This was a $30 stock just four years ago.
Quebecor World will sell up to $213-million of subordinated voting shares to public investors, and another $65-million of multiple voting and subordinated shares to Quebecor Inc. to maintain the parent’s ownership stake.
This will be a marketed deal, with Quebecor World executives hitting the road to talk up the company’s prospects before putting a price on the new stock. RBC Dominion Securities, TD Securities, Scotia Capital and BMO Nesbitt Burns are leading the transactions.
In this type of financing, the hedge fund crowd can attempt to make a quick score by short selling the stock when the offering is announced, in hopes of buying stock back at a lower price when the new shares are sold.