UPM-Kymmene

WASHINGTON, DC—Several of the major label stock vendors are reportedly under investigation for price fixing by the U.S. Department of Justice (DOJ). Under investigation are Avery Dennison, Bemis, Morgan Adhesives (MACtac), Raflatac and UPM-Kymmene. The DOJ is trying to determine if the companies raised, fixed and maintained the prices of self-adhesive label stock from January 1, 1999, to the present. News of the investigation and suit began back in April when Avery announced that the DOJ had begun a criminal investigation into competitive prices in the label stock industry and would shortly subpoena the company in connection with that investigation. Bemis followed Avery and announced that

PURCHASE, NY—International Paper (IP), based here, has made an unsolicited $6.2 billion cash and stock counter-offer to acquire Stamford, CT-based Champion International, which had already planned a friendly merger with Finland's UPM-Kymmene Corp. As part of the deal, IP would also assume about $2.3 billion in debt from Champion. Sparking the move is a recent 20 percent slide in UPM's share price, which has caused the value of the UPM's all-stock offer to slip from $6.6 billion at the time it was announced to about $5 billion. The possible bidding war is only the latest turmoil to hit the paper industry after a wave of consolidation

Foreign paper and board producers gobble up U.S. industry giants as the market continues to tighten for commercial printers. BY ERIK CAGLE Typically, activity in the paper industry is about as gripping as a documentary on fast-drying paints. But during a two-week period in February, two of the biggest names in U.S. paper and board manufacturing paired off with large, foreign counterparts in one of the biggest consolidation waves in industry history. When the smoke cleared: UPM-Kymmene, of Finland, purchased Stamford, CT-based Champion International. Finnish-Swedish manufacturer Stora Enso acquired Chicago-based Consolidated Papers, less than a month after buying Norweigan paper wholesaler Carl Emil