Metso cancels extra dividend after furor over job cuts

HELSINKI, Sept 20 Thu Sep 20, 2012 8:41am EDT

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HELSINKI, Sept 20 (Reuters) - Finnish engineering company Metso withdrew its proposal for an extra dividend after criticism over its plan to cut jobs.

Earlier this month, Metso proposed an extra dividend of 0.5 euros ($0.65). A few days later it announced a plan to cut up to 630 jobs in its Finnish paper machine operations, prompting criticism from government officials and union leaders.

The Finnish state is Metso's biggest owner with an 11 percent stake.

"Withdrawing the proposal is in the Board's view in the best interests of the company, its shareholders, the personnel and thereby Metso's overall position and future development," the company said in a statement. ($1 = 0.7658 euros) (Reporting by Helsinki newsroom)

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