Why did UPM-Kymmene move?
Written after the close on
UPM fell sharply as EU concerns on the paper joint venture weighed. Over the last five trading days UPM-Kymmene Oyj fell sharply, more than a clearly weaker OMX Helsinki 25, with the decline concentrated in the latest session. The most likely driver is the European Commission repeating serious concerns about the planned graphic papers joint venture with Sappi and sending a Letter of Facts, a formal statement of objections the parties must answer; the risk that the deal is blocked or needs remedies likely weighed on the shares. Earlier in the period, broker upgrades to buy with a €30 target and a modest fair-value lift gave some support, but they were not enough to offset the regulatory setback. Watch the next earnings report in late October and any response or commitments UPM and Sappi offer to the Commission.
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History in plain words, not investment advice.