UPM in Talks with Myllykoski Over Regional Operations

Sept. 28, 2010 - UPM said that it is engaged in discussions with Finnish publication paper company Myllykoski Group concerning a potential transaction of Myllykoski's operations in Finland, Germany and United States.

Details of the discussions were not disclosed.

Myllykoski did, however, say that it has been in negotiations with its financiers on its debt and that it has been engaged in negotiations with various partners regarding structural arrangements.

Myllykoski confirmed that negotiations with UPM are ongoing, but would not comment further.

In a written statement, UPM said current discussions continue and a number of significant issues remain unresolved.

"There can be no certainty that the discussions between UPM, Myllykoski and its lenders will result in a transaction," the Helsinki-based papermaker stated.

UPM said that it will announce the result of the talks if they result in a conclusion where public disclosure is appropriate under applicable laws or if the talks are terminated.