Dumbest business decision of the decade
77 x served & 13 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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