1.   A bid for Telegraph would come at a time when it and its competitors are suffering squeezed margins as a result of newsprint price increases.

2.   The newsprint increase eroded most of the higher revenue.

3.   While the latest results were weaker than a year ago, Abitibi-Consolidated is expected to benefit later this year from rising newsprint price increases.

4.   Spokeswoman Lee Ann Schlatter said the company has given its papers a mandate to devise ways to offset newsprint price increases.

5.   The newsprint increases are rooted partly in the cyclical nature of the paper business, which tracks the ups and downs of the broader economy.