Public Affairs Department
Scott Deitz
Telephone: (715) 422-1521
FOR IMMEDIATE RELEASE August 25, 2000
CONSOLIDATED PAPERS TO SELL ITS INTEREST IN WISCONSIN RIVER POWER COMPANY;
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PUHCA STATUS CLARIFIED
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WISCONSIN RAPIDS, Wis. - Consolidated Papers, Inc. (NYSE: CDP) and
Stora Enso Oyj announced today that Consolidated Papers has entered into an
agreement to sell its one-third interest in Wisconsin River Power Company to
Wisconsin Public Service Corporation. Wisconsin River Power Company is an
electric utility jointly owned by Consolidated Water Power Company, a subsidiary
of Consolidated Papers; Wisconsin Public Service Corporation; and Alliant
Energy. Pending completion of the sale, Consolidated has undertaken not to vote
its shares in Wisconsin River Power Company.
As a result, Consolidated and Stora Enso believe that it is no longer
necessary for Stora Enso to obtain prior SEC approval of Stora Enso's
acquisition of Consolidated under the Public Utility Holding Company Act because
Consolidated now owns the voting securities of only one PUHCA-jurisdictional
"public utility company." Stora Enso, therefore, is withdrawing its March
application to the SEC for acquisition authority.
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Consolidated has filed a separate application with the SEC for an
exemption from the Public Utility Holding Company Act. The basis for the
application, under Section 3(a)(3) of PUHCA, is that Consolidated is only
incidentally a holding company, being primarily engaged in a business other than
that of a "public utility company," and that the utility operations of
Consolidated's direct power subsidiary, Consolidated Water Power Company, are
functionally related to Consolidated's primary paper business. Stora Enso and
Consolidated believe that they are not required to wait for action to be taken
by the SEC on this application before the closing of the Stora Enso and
Consolidated Papers acquisition transaction.
If Consolidated's shareholders approve the Stora Enso acquisition at
the meeting on August 30, Consolidated and Stora Enso expect the acquisition to
close on August 31 or in early September.
For more information, read the Proxy Statement/Prospectus dated July
26, 2000, which Stora Enso has filed with the Securities and Exchange Commission
as part of a Registration Statement, because it contains important information.
The Proxy Statement/Prospectus was sent on or about July 28, 2000, to
shareholders of Consolidated Papers, Inc. seeking their approval of the proposed
merger of Consolidated Papers with a subsidiary of Stora Enso. Free copies can
be obtained of the Proxy Statement/Prospectus and other documents filed by
Consolidated Papers (as well as certain documents filed by Stora Enso) with the
Commission at the Commission's Web site at http://www.sec.gov. Stora Enso's
Registration Statement on Form F-4 (File No. 333-12342) may also be obtained
from the Commission's public reference room located at 450 Fifth
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Street, NW, Washington, DC 20549, or at one of the Commission's other public
reference rooms in New York, New York, and Chicago, Illinois. Please call the
SEC at 1-800-SEC-0330 for further information on the public reference rooms. The
Registration Statement, including documents incorporated by reference therein,
may also be obtained from Stora Enso by contacting Stora Enso Oyj, Attention:
Maija Harsu, Investor Relations, Kanavaranta 1, P.O. Box 309, FIN-00101
Helsinki, Finland, and/or Consolidated Papers, Inc. by contacting Consolidated
Papers, Inc., Attention: Tim Laatsch, Corporate Communications, 231 First Avenue
North, P.O. Box 8050, Wisconsin Rapids, Wisconsin 54495-8050. Consolidated
Papers, Inc., its directors, executive officers and certain other members of
Consolidated Papers management and employees may be soliciting proxies from
Consolidated Papers shareholders in favor of the transaction. Information
concerning the participants is set forth in the Proxy Statement/Prospectus.
Consolidated Papers, Inc. is one of North America's largest producers
of coated and supercalendered printing papers for the printing and publishing
industries. In addition, the company is one of the leading producers of
specialty papers and manufactures paperboard and paperboard products. To learn
more about Consolidated Papers, Inc., visit its Web site at
http://www.consolidatedpapers.com.
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Stora Enso Oyj, domiciled in Finland, is one of the world's leading
forest product companies. Core businesses include magazine papers, newsprint,
fine papers and packaging boards. In these product areas, Stora Enso holds a
leading global market position. Stora Enso also conducts extensive sawmilling
operations. To learn more about Stora Enso, visit the company's Web site at
http://www.storaenso.com.
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