STOCKHOLM, Sweden, Dec. 2, 2002 (PRIMEZONE) -- AvestaPolarit (Stockholm:AVPO) has a general principle of not publicly commenting on any rumours or business negotiations in which it is involved. However, in view of the forthcoming interpellation debate in the Riksdag (Swedish Parliament) on Tuesday, December 3, and the recurrence of inaccurate or misleading information concerning the discussions between Mr. Carl Bennet and AvestaPolarit, we would like to issue the following statement:
"AvestaPolarit was prepared to sell the Degerfors melting shop,including the buildings and equipment, to Mr. Carl Bennet for the priceof one Swedish krona, provided that no competitive business operationswere established.
"Carl Bennet made the deal conditional upon an undertaking fromAvestaPolarit to purchase substantial volumes of stainless steel fromhis new company. This would have prevented AvestaPolarit from proceedingwith its plans to transfer production from Degerfors to Sheffield,resulting in a considerable loss of income for AvestaPolarit. Inaddition, Mr. Bennet's proposal required AvestaPolarit to contribute tohis new business with a substantial proportion of the financing capital.In return for contributing only 13 per cent of the financing capital,Mr. Bennet would receive 85 per cent of the shares in the new company.The conditions set by Mr. Bennet meant that AvestaPolarit would havetaken most of the risks involved with the venture, whereas Mr. Bennet'sown investment would have been relatively modest."
AvestaPolarit concluded that it had no financial prerequisites to reach an agreement with Mr. Bennet on the basis of such demands. A public company with a stated profit target has a responsibility towards shareholders and other stakeholders to pursue constant profitability.
For further information about AvestaPolarit and its operations in Degerfors, please visit AvestaPolarit's website at: www.avestapolarit.com.
For further information, please contact:
Hannele Obrink, Manager, Investor Relations Tel: +46 (0)8 613 4419 or +46 (0)70 652 1032 e-mail: hannele.obrink@avestapolarit.com
AvestaPolarit Corporate Management Linnoitustie 4 A, PL 270, FIN-02601, Espoo, Finland. Tel: +358 9 5764 5511, fax: +358 9 5764 5555, Registered Office: Espoo, Business ID: 0823312-4
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