Rethinking Corporate Governance
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Rethinking Corporate Governance

The Forming of Operative and Financial Strategies in Global Corporations

Sven-Erik Sjöstrand

Rethinking Corporate Governance’s extensive and insightful empirical investigation offers a radically new approach to corporate governance. This ground-breaking volume describes and analyses the key nature-based and actor-based forces that ultimately determine corporate governance processes and long-term corporate paths. Generally, such forces work in complex and intricate interplays that to a large extent vary among corporations. The author argues that actions taken by individuals have a special status among those forces, as they not only generate impact in themselves, but also involve interpretations of the possible effects of all the other forces. Among those actions, the ones taken by the shareholders stand out as particularly decisive both for the governance processes as such and for how corporations develop over time.
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Chapter 12: From Stora Kopparberg to Stora Enso: towards a grand merger

Sven-Erik Sjöstrand


In the early 1980s, Stora Kopparberg gave priority to its expansion into fine paper. As noted in Chapter 11, CEO Berggren had proposed that the company make a non-cash acquisition of Papyrus, while Nymölla would get Grycksbo, Newton Falls and a 50 per cent holding in Pegenova from Stora Kopparberg. Nymölla would then change its name to Papyrus and continue as a listed fine paper company. Berggren noted that such a ‘new Papyrus’ would thus have the strongest marketing and distribution organization for fine paper in the region and would be capable of developing a unique and broad product repertoire without arousing conflicts of interests inside the family sphere. A larger and more focused Papyrus would possess the necessary resources for extensive product development and expansion abroad. All in all, the company could become one of the strongest units on the European fine paper market. Wallenberg hesitated, as he was not convinced that the suggested re-shuffling of units would work in practice. However, Dahlbäck supported Berggren, and the two convinced Wallenberg to change his mind. In those talks, Berggren suggested even more far-reaching structural plans for the Wallenberg family’s forest-based industrial group with Stora Kopparberg as the hub. He wanted to see Stora Kopparberg acquire (in turn) Papyrus, Billerud and Swedish Match.

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