IP and Stora Enso TogetherOr not? Sources Say Merger Is Unlikely

Published: August 22, 2001, By PRESS RELEASE

NEW YORK, USA & HELSINKI, FINLAND—According to the latest from Reuters, the rumors of an International Paper-Stora Enso merger may be premature. The newswire service does report International Paper (IP) "may be eyeing its possible acquisitions," but sources close to the US-based IP say a confirmed merger with the Finnish-Swedish company is "very premature."

President of IP's European operation, Paul Herbert, told reporters via a telephone from his London office he has no knowledge of any merger talks with Stora Enso. "International Paper, like every other company, is continuously examining beneficial consolidation options," he said.

But Herbert did add such a merger "would be enormous," and would likely raise competition issues, particularly in the coated-paper manufacturing industry in the US.

If the companies were to merge, Reuters reports, it would create an industry giant with a combined 2000 net sales of about $40 billion. In terms of output, IP is the world's biggest papermaker; Stora Enso is number two.

For more information about the rumored merger and other current paper industry news, check out paperloop.com.