RR Donnelley took a step closer to reducing its stake in Stream International last week after it filed a public offering to sell off the outsource technical support business unit.
Once the flotation goes through, RR Donnelley plans to reduce its shareholding in the outsourcing business from 80 per cent to less than 40 per cent and its stake in the Corporate Software & Technology (CS&T) and Modus Media by less than 50 per cent.
The remaining investment for CS&T will come from the management and minority investors. In addition, venture capitalist Bain Capital is upping its stake in the reseller from its current holding of 12 per cent to 40 per cent.
As part of the reorganisation, CS&T and Modus Media International will cease to be part of Stream?s holding company. They will both be spun off as separate businesses under another entity.
CS&T marketing director Clarissa Roberts, who was summoned to the US last week, said: ?Bain will lead the balance of the shareholding, which is a strong vote of confidence in us.
?As to the future ownership of Corporate Software, that is still under assessment. There are a number of potential routes such as acquisition and a management buyout.?
One source said: ?Executives are working very hard to shore up the company and regroup into more focused areas where they have a technology or market leadership role.
?The problem is that Corporate Software is so far behind in the online sales of software products that I doubt it can catch up with the likes of Software Spectrum.?
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