UPM responds to M-real’s rejection

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2 February 2007 — Helsinki (FIN): M-real has rejected UPM’s €500 million ($649 million) offer for a 15 percent stake in pulp producer Botnia.

UPM’s president and CEO, Jussi Pesonen, said: "We believe that both M-real and UPM share common business interests in Botnia as major pulp users. Cost efficient high-quality pulp is an important component of value creation for both of us."

 

He continued: "In our offer we stated that we would be ready to discuss other alternatives as appropriate. During November to January UPM made multiple requests to M-real to start negotiations. However, they did not lead to negotiations.

 

"The value of Botnia, however, will be enhanced only if it is developed focusing on pulp users’ needs."