Failed U.S. buy cost Stora 3 bln euros-study

HELSINKI, July 13 (BestGrowthStock) – Top European paper and board
maker Stora Enso’s (STERV.HE: ) failed acquisition in the United
States cost the company between 2.0 billion euros ($2.5 billion)
and 2.7 billion, according to a study published on Tuesday.

Stora Enso bought Consolidated Papers of Wisconsin in 2000
for 4.9 billion euros but sold the loss-making unit to Cerberus
Capital Management in 2007.

Researcher Antti Koulumies from Finnish Aalto University
said many previous estimates of the final cost of the
acquisition for Stora Enso had been too high because they failed
to take into account the positive tax effects of the losses and
were based on unrealistic estimates on capital costs.

Koulumies said Stora Enso’s plan in the North America failed
mainly because the paper market started to collapse shortly
after the deal was done.
(Reporting by Terhi Kinnunen; Editing by David Holmes)
($1=.7939 Euro)

Failed U.S. buy cost Stora 3 bln euros-study