Helsinki, Finland, (May 12, 2000) - UPM-Kymmene Corporation (Helsinki Stock Exchange: UPM1V; NYSE: UPM) announced today that its board of directors has decided not to make a new offer for all Champion International's (NYSE: CHA) outstanding shares.
"After International Paper's unsolicited offer it has become clear that the merger of Champion International and UPM-Kymmene cannot be carried out at a price level acceptable to UPM-Kymmene shareholders," says Mr Juha Niemelä, President and Chief Executive Officer of UPM-Kymmene.
"UPM-Kymmene's market positions are strong and profitability is good. Therefore, UPM-Kymmene is capable to be an active player in the consolidation process of forest industry. Champion would have been a good match for UPM-Kymmene. However, the termination of the planned acquisition does not change UPM-Kymmene's strategy: our primary objective is to be one of the world's leading forest products companies," adds Mr Niemelä.