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Wednesday, December 31, 2014

Verso Paper needs divestitures for NewPage deal, (NYSE: VRS)

Verso Paper Corp will have to divest paper mills in Maine and Wisconsin in order to complete its acquisition of NewPage Holdings, the U.S. Justice Department said.The specialty paper maker's shares rose as much as 16 percent after it reached a settlement with the DoJ that will allow Verso to proceed with its $900 million deal announced last January.The government said the deal would have risked higher prices for paper used for labels and magazines without the divestiture."We are pleased that we were able to address the concerns of the Justice Department while preserving the benefits of the transaction for our stockholders," Verso CEO David Paterson said in a statement.

Verso Paper Corp. (Verso Paper) is a holding company. Shares of VRS traded higher by 12.35% or $0.4/share to $3.64. In the past year, the shares have traded as low as $0.62 and as high as $5.55. On average, 86356 shares of VRS exchange hands on a given day and today's volume is recorded at 276773.