UPP said to be target of takeover

UPP said to be target of takeover

SINGAPORE (Reuter): United Pulp & Paper rose to a new year high of S$1.19 in late afternoon trade yesterday on rumors of a takeover by an Indonesian or Malaysian party.

At 0840 GMT, the share was at S$1.18, up 20.20 percent or 19 cents, with more than 7.3 million shares traded.

Dealers said there were vague rumors of a possible takeover by either an Indonesian or Malaysian party. Another rumor was a possible rights issue, they said.

Analysts said the company is an attractive takeover target considering its main board listing and small capitalization.

UPP, which makes paper products and packaging, is majority- owned by the Malaysian Lim family through a company called Muda Holdings.