QUEBECOR <PQB> HEAD SEES NEW VENTURES LIKELY
Quebecor Inc, one of Canada's largest
publishing and printing companies, is likely to launch a new
daily newspaper in Montreal, probably this fall, president
Pierre Peladeau told Reuters in an interview.
    The company, which last week won a bid to buy the Quebec
government's 55 pct interest in pulp and paper company <Donohue
Inc>, will also likely go ahead with plans to build a new paper
mill in Matane, Quebec, Peladeau said.
    "I would say we will move (ahead with the daily).... This
is not definite but i think we will," he said, adding that he
plans to announce a decision early next week.
    Quebecor, which had revenues of 446 mln Canadian dlrs last
year and profit of 16.2 mln dlrs, already publishes three daily
newspapers, including the tabloid Le Journal de Montreal, the
second-largest circulation paper in Canada.
    A new daily would give Montreal its second English-
language paper and its sixth daily newspaper, making the city
the most crowded metropolitan newspaper market in North
America, analysts have said.
    Peladeau said market studies have indicated a new English
language tabloid would have circulation of 50,000 within six
months. He said he is waiting to determine whether the new
venture would have the support of major advertisers.
    Peladeau, who together with family members owns about 55
pct of Quebecor, said he has recieved offers from the heads of
two major Canadian companies who are interested in the project
but has not decided whether he would take partners in the
newspaper venture.
    He said he would consider launching the newspaper with one
of the companies as a prelude to other joint ventures.
    "It would be the possibility of doing something else in the
short term," Peladeau said.
    Peladeau said the joint acquisition of Donohue with Robert
Maxwell's British Printing and Communications Corp plc <BPCL.L>
does not mean Quebecor will have to hold off on other projects.
    Peladeau and Maxwell's companies teamed up to buy the stake
in Donohue, which resulted in Quebecor buying 51 pct of the
govvernment's stake for about 165 mln Canadian dlrs and British
printing acquiring the other 49 pct.
    "In 1976 or 77 there was a tremendous shortage of
newsprint. There were days when we didn't have enough paper to
print the paper," Peladeau said. "When I lived that, I said to
myself...next time we'll be ready."
    Peladeau said most of Donohue's current total newsprint
capacity however, is already committed to other buyers.
    Quebecor uses about 100,000 metric tons of newsprint a year
and Maxwell's company, which publishes Britain's Daily Mirror
newspaper, uses about 200,000 tonnes.
    Peladeau said even with a new 170 mln dlr paper machine, 49
pct owned by the New York Times, (NYT.A), adding to Donohue's
540,000 metric tonne capacity this fall, the companies will
have to install another paper machine at Amos, Quebec, or build
another mill to meet their demands .
    He said a new mill, which would produce either newsprint or
other types of paper, would cost 400-500 mln dlrs and could be
on stream in two years. He said a mill in Matane, a depressed
area with high unemployment, would be heavily subsidized by the
government.
    Peladeau said he is interested in further joint ventures
with Maxwell's company, either in the newspaper market in
France or in the U.S., where the company owns two large
printing plants and is looking to expand its newspaper empire.
    He said Maxwell's sons, who are French citizens, would
provide an entree into the French market, where foreigners are
prevented from buying newspapers. Peladeau said he would
consider either buying into or starting daily newspapers in
France or the U.S.
    Quebecor is also in the process of expanding its chain of
about 40 weekly newspapers, with the possible acquisition of
two groups of weekly newspapers in the U.S., and is negotiating
the acquisition of two weekly newspaper chains in Canada,
Peladeau said.
    He said the company may consider starting daily newspapers
in two small Quebec cities and buying radio stations in the
province.
    Peladeau said Quebecor may also consider trading in its
listing on the American stock exchange for a New York Stock
Exchange listing.
 Reuter
