Stora Enso has started preliminary discussions to sell more than 600,000 hectares of its 2.6m hectares of forest land in Finland following last weeks rumours of a merger with International Paper (IP).

The Finnish government has already emerged as a potential buyer.

Stora Enso vice president of communications and investor relations Kari Vainio confirmed the group has had initial discussions with potential buyers.

Vainio said personal attacks on the firms management contained in a report issued by Credit Lyonnais Securities Europe were a bit surprising.

The report criticised the management over the discussions with IP (PrintWeek, 24 August).

While we appreciate the analysts view in matters relating to business, we do not understand the personal attack, he said.

The document calls the proposed merger a final desperate throw by leadership that has served shareholders poorly. It also states the correct agenda for Stora Enso would be to update its ageing facilities, and divest itself of non-core activities. It throws scorn on the groups acquisition of Consolidated Papers.

Although some buyers and analysts said they could see the logic of the two largest players in the market combining, competition concerns are bound to be raised.

Its a great shame as we will see market choice being eroded, and with that the competitive edge will go, said Southernprint purchasing director David Mears.

Story by Andy Scott