Article: Canada : Quebec eyes stake in papermaker.

Byline: pinto03

The Quebec government could invest directly in struggling AbitibiBowater Inc., the Montreal-based forestry giant that ranks as the world's largest newsprint producer, provincial Economic Development Minister Clement Gignac said yesterday.

But he told a Montreal news conference he would consider such an investment only if the company and its unions are ready to make "sacrifices" and cut costs by $50 to $75 U.S. a tonne to widen margins and improve competitiveness in North America and overseas.

That would be a big target. Newsprint now sells at $480 U.S. per tonne, an all-time low after inflation. Consumption by United States ...

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