Dumbest business decision of the decade

93 x served & 18 x viewed

The Swedish busi­ness paper “Dagens Indus­tri” has lis­ted ten can­did­ates for the not so flat­ter­ing dis­tinc­tion “dumbest busi­ness decisions of the dec­ade” in Sweden. Stora Enso tops the list for the decision to acquire Con­sol­id­ated Papers for EUR 4.9 bil­lion in the year 2000.
Stora Enso’s CEO Jukka Härmälä and Chair­man Claes Dahl­bäck burned addi­tion­al bil­lions in restruc­tur­ing the North Amer­ic­an paper com­pany, before finally divest­ing the remain­ing assets to NewPage for EUR 1 bil­lion in 2007. The deal also com­prised 19,9% of the shares, which recently became prac­tic­ally worth­less.
On top of this, the duo sold Finnish and Swedish forest resources and hydro­power assets, just before the boom­ing of wood prices and cost of elec­tricty.
The total loss for Stora Enso has been between EUR 5 and 7 bil­lion accord­ing to the news­pa­per.

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