Brazil's Ripasa pulp maker denies sale talks
Brazilian paper and wood pulp producer Ripasa denied a report on Friday that it was in talks with International Paper Co., Stora Enso and local rival Suzano Bahia Sul.
But Ripasa SA Celulose e Papel later posted a statement saying the controlling shareholders' strategy included studying alternatives to grow the company. The comment came in response to an inquiry from the Sao Paulo Stock Exchange (Bovespa) for an explanation for the recent volatility in Ripasa's shares.
"The alternatives could include an association or other form of transaction, which might or might not alter the shareholder structure, although there is no definition on this subject at this time," the Ripasa statement said.
Brazil's Valor Economico financial daily reported the company, which is the seventh largest pulp producer in Brazil, was in discussions with the three groups. The talks could lead to the sale of Ripasa, a merger, or perhaps a strategic alliance.
"There is no foundation to these rumors," Andrea Nakane, a public relations spokeswoman at Ripasa, said earlier.A different press spokeswoman said there was no change in the firm's position after the statement to the stock exchange.
Ripasa stock, which has rallied 15.5 percent over the past five sessions, lost early gains to slump 2.9 percent to 3.98 reais in afternoon trade in Brazil. The country's benchmark Bovespa stock index was down 1.3 percent at the time.
The newspaper said 47-year-old Ripasa, which is 97.7 percent owned by ZDZ Participacoes, a holding company controlled by the Zogbi, Derani and Zarzur families, was worth some $300 million.
Earlier, Kari Vainio, a spokesman for Finnish-Swedish group Stora Enso said, "They are market rumors and we do not comment on market rumors."
There was nobody immediately available at International Paper, the world's largest forest products company, or Suzano to comment.
(From Reuters, October 22, 2004)
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