Phoenix, Siam Cement 'just good friends'<\/p>\n
BANGKOK (Reuters): A top executive of Thailand's Phoenix Pulp
\n& Paper Plc on Friday denied rumors of an imminent merger with
\nSiam Cement Plc, saying the two were \"just good friends\".<\/p>\n
Siam Cement, the country's biggest conglomerate, is one of
\nPhoenix's best customers, the pulp firm's executives said.<\/p>\n
Phoenix shares have risen sharply this week following comments
\nby officials of Siam Cement that they had been considering buying
\na large number of shares in Phoenix for several months.<\/p>\n
Phoenix jumped almost 14 percent on Friday to 43.50 baht after
\nwidespread speculation in the Thai media that a merger would be
\nannounced soon. The Thai benchmark composite SET index was up
\njust over one percent on Friday.<\/p>\n
But Phoenix officials told Reuters there had been no formal
\ndiscussion on a merger with Siam Cement.<\/p>\n
\"Siam Cement has not told us anything,\" Phoenix Executive
\nDirector Vashi Purswani said in an interview.<\/p>\n
\"If investors want to sell the shares, it is their decision,\"
\nhe said. \"Siam Cement is our best customer and we have a very
\ngood relationship with them,\" he said. \"We are just good friends.<\/p>\n
\"The company has no role in this (acquisition deal). The
\ndecision is up to the shareholders,\" he said. \"As the management
\nwe can not say anything.\"<\/p>\n
Phoenix is Thailand's largest producer of pulp for sale and
\nhad a turnover of 3.75 billion baht in 1999 resulting in a net
\nprofit of 702 million baht.<\/p>\n
In the first nine months of 2000, Phoenix turned in a net
\nprofit of 1.64 billion baht.<\/p>\n
Barra's Estimate Directory shows an average market average
\nconsensus of a net profit of 2.08 billion baht in 2000 and 2.13
\nmillion in 2001.<\/p>\n
Based in northeastern Thailand, Phoenix produces about 200,000
\ntons per year of pulp from bamboo, eucalyptus, and kenaf. It
\nexports about 50 percent of its product to China, Indonesia,
\nEurope, Malaysia and the Philippines.<\/p>\n
The company sold 36 percent of its pulp to Siam Cement last
\nyear, representing about 70 percent of Phoenix's domestic sales,
\nPurswani said.<\/p>\n
Chief Finance Officer A.S. Banthis said he did not expect
\nproblems dealing with Siam Cement if there were to be an
\nacquisition.<\/p>\n
\"There may be a slight adjustment in working cultures, that is
\nall. We are professional managers,\" he said. \"Last year they
\nwanted to sell us their paper business. It's funny how things
\nchange,\" he added.<\/p>\n
Purswani said the company expected a strong performance in
\n2000 and in 2001 despite a downward trend in global pulp prices.<\/p>\n
\"In 2000 we have topped everything, maximum sales value wise
\nand maximum profit,\" he said.<\/p>\n
Banthis said the company's fourth quarter results could be
\nextrapolated from the results of the first three quarters.<\/p>",
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