Verso Paper Corp. has announced it has ended an attempt to negotiate a merger with NewPage Corporation and its creditors.
NewPage filed for Chapter 11 bankruptcy in September last year.
The initial offer in July this year included $150m of Verso common stock and $200m in cash.
Verso president and CEO David Paterson said: "After careful analysis, we believe it is in the best interests of our company and its stakeholders to focus on the many other opportunities for Verso, including internal growth projects and other potential strategic alternatives."
Verso Paper Corp. produce flexible packaging papers and packaging labels.
NewPageCorporation recently introduced OmniPoint, a 60 lb. (89 gsm) heavyweight wet strength label paper designed for glass and plastic containers used in food, beverage and condiment applications.
"We worked closely with our customers to develop a heavyweight label paper solution that meets their needs for consistent quality, durability and label converting performance, while allowing them to deliver the best possible label graphics for their food and beverage brand owner customers," said David Diekelman, executive director of sales and marketing for specialty papers.