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Monday, January 6, 2014

Verso Paper to purchase NewPage Holdings for $900 mln, (NYSE: VRS)

Coated paper maker Verso Paper Corp said it would purchase privately held NewPage Holdings Inc for about $900 million in cash and Verso bonds to form a larger company that can withstand increasing pressure from digital media.Verso's shares jumped more than 300 percent to $2.75.Demand for coated paper from magazines and catalogues has been declining as lower readership and advertising in print media force publishing and media groups to move online.NewPage, which emerged from Chapter 11 bankruptcy in December 2012, had said last month it would delay a planned initial public offering.

Verso Paper Corp. (Verso Paper) is a holding company. Shares of VRS traded higher by 175.38% or $1.14/share to $1.79. In the past year, the shares have traded as low as $0.52 and as high as $1.68. On average, 28311 shares of VRS exchange hands on a given day and today's volume is recorded at 1192973.