Burton Denies Moore Delistment Reports
Much criticism has been aimed at the $261⁄2 million severance payment given to former CEO Ed Tyler, replaced by Burton. Seeking to plug Moore's financial sieve, Burton implemented a $100 million U.S. cost-cutting plan that included cutting 1,300 jobs.
Moore is also facing a legal challenge from 5,300 employees in response to the company's plan to take a multimillion dollar surplus on its pension plan. The CP reported that the surplus, once worth in excess of $200 million, is currently valued at around $160 million due to a decline in its investments.
In other news, the company announced it has completed the sale of Colleagues Group Limited—Moore's United Kingdom-based advertising and direct marketing business—through a management buyout. In a separate transaction, Moore also announced it has divested in VISTAinfo, an online provider of real estate products and services, to Fidelity National Financial.
The divestments support Burton's cost-reduction initiatives. Financial details of the transactions were not disclosed.
"While the U.K. direct marketing business and the online real estate business are niche operations, they are not core to our future growth, do not offer synergies with our core businesses, and are draining management focus and resources away from our core forms and labels and integrated business solutions operations," Burton stresses. "This action directly supports my commitment to significantly reduce Moore's operating costs by eliminating activities that distract us from our focus of delivering shareholder value.
"Earlier this year, I committed to reducing Moore's operating costs by $100 million in order to create a company that can consistently deliver increased value for our customers, our shareholders and our employees. Actions, and results, in support of this commitment are starting to mount and momentum is starting to build in our favor," he adds.