Nov. 16, 2006 - M-real said that it has made a preliminary review of UPM's offer to buy 15% of Metsä-Botnia shares and has asked UPM for clarification of specific portions of the deal.

According to M-real, UPM's offer includes a condition concerning competition law authorizations which was not mentioned in the company's stock exchange release. M-real said additional detail would help the company determine whether UPM's offer is feasible from the competition law point of view.

UPM currently holds a 47% stake in Botnia, while M-real holds 39% and Metsäliitto Cooperative holds 14%.

M-real said it has established a committee made up of members independent from Metsäliitto Cooperative. The committee will evaluate and, if necessary, prepare the sale of Metsä-Botnia's shares.

The committee has hired the law firm Roschier, Attorneys Ltd. as its legal advisor and investment bank JP Morgan as its advisor in valuating Metsä-Botnia shares.

UPM currently holds a 47% stake in Botnia, while M-real holds 39% and Metsäliitto Cooperative holds 14%.

Botnia is Europe’s second largest pulp producer with five mills in Finland and production capacity of 2.7 million tonnes a year. About 80 per cent of production is sold to the paper mills of Botnia’s owners, while the other 20 per cent is sold on the market, mainly in Europe.

SOURCE: M-real Corp.

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