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E-M:/ UPM-Kymmene to Buy Champion



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Enviro-Mich message from Murphwild1@aol.com
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Greetings,

I found this announcement Michigan specific, since Champion has paper mills 
in Michigan. The deal was sealed today.

It is worth noting that this new corporation, UPM-Kymmene, will only employ 
49,000 people in 17 countries. That is an average of 2882.3 jobs per country. 
That's ONLY 55.4 jobs per state in USA. While Champion my not be deforesting 
in every state, these are very significant and telling  figures. 

How many acres of land does Champion own in Michigan? How many paper mills do 
they operate? How many people are actually employed by Champion in Michigan? 
How many people in Michigan will lose their jobs from this buy-up? How many 
jobs are related to logging in public lands vs private lands? 

Murray Dailey



February 17, 2000 

Wall Street Journal

UPM-Kymmene to Buy Champion
In a $6.5 Billion Stock Transaction

Dow Jones Newswires

STOCKHOLM -- Finnish pulp and paper group UPM-Kymmene Corp.
said Thursday it has agreed to acquire U.S. rival Champion International
Corp. in stock swap valued at $6.5 billion.

UPM-Kymmene said it will offer 1.99 newly issued shares for every
common share in Champion.

The companies anticipate that they will have annual cost savings of 330
million euros ($325.6 million) by 2002.

The merged company will be headquartered in Helsinki and
UPM-Kymmene's current chief executive, Juha Niemaelae, will be CEO
of the combined firm.

The offer represents around a 30% premium on Champion shares,
UPM-Kymmene said. The transaction will be accounted for as a pooling
of interests, the companies said.

The combined company will have sales of around 13 billion euros a year
with mills in 17 countries. Together, the companies will have around
49,000 employees and 15.8 million acres of forest land under
management. The total paper-making capacity will be 12.1 million metric
tons a year.

Six members of Champion's current board will be invited to join the board
of the merged company.

The merger is contingent on the approval of both companies' shareholders
and regulatory review. The companies said they believe the deal can be
closed in the first half of this year.

The cost savings are expected to be derived from cutting logistical and
purchasing costs, lower operating costs, better internal pulp utilization and
lower administration costs, the companies said.

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