In other words, Arctic Paper's offer will not be accepted to such an
extent that Arctic Paper would obtain over 90 percent and thereby be
able to request the compulsory redemption of outstanding shares and
consequently that a merger cannot be implemented.
A merger of the two companies may be expected to generate synergies of
approximately SEK 80 million and also that, from the perspective of
both results and cash flow, a merger would balance out the two
companies' very strong dependency on fluctuations in pulp prices. A
precondition for realising a substantial proportion of these synergies
is that the companies are completely amalgamated and that one head
office and one management group be phased out.
The Board of Directors' recommendation remains unchanged, that is to
say that the companies merge to enable these synergies to be realised.
The fact that two major owners controlling more than 10 per cent of the
capital and voting power have given notice that they will not accept
the bid means in that event that a merger cannot be effected and that
it would thus not be possible to secure most of these synergies.
BREAKING