The announcement came as parent company Sequana Capital announced its year-end results, with Antalis and paper producer Arjowiggins showing contrasting figures.

However, Antalis UK managing director Henry Cubbon said the announcement was "just a signal of a lot of fluidity in the market".
"A lot of people are getting nervous, and some are looking to buy, others to sell."

Sequana said there were no signs of improvement in the paper sector, which will "undermine the performances of its two paper arms in 2006".

A three-year strategic plan is being finalised by Arjo, and while no details have been issued, this should begin to be implemented in H2 2006.

However, its financial woes continue. The fine paper producer's operating income fell by 22.2% to 57.3m, due to slow growth in volumes and prices, and cost increases for energy and raw materials.

Arjo also reported a charge of some 146m in costs related to compliance with accounting standard IFRS. As a consequence, the company reported a net loss of 109m for the year, but did manage to reduce its net debt by 28% to 202m.

At Antalis, operating income rose by 27.4% to 37m (53m), while net profits increased by more than 75% to 18.5m. The firm's net debt was reduced by 2.8% to 219m.