HELSINKI May 13 Finnish paper firm Ahlstrom
said a planned spin-off of its label and processing
unit would require more spending and yield lower savings than
initially expected, due to steps aimed at addressing regulators'
Ahlstrom, which plans to spin off the unit and combine it
with privately held Munksjo, said it plans to sell its abrasive
backings and pre-impregnated decor paper businesses to a third
party in response to demands by the European Commission.
Ahlstrom said costs related to the latest plan meant the
spin-off will yield 20-25 million euros ($26-32 million) in
annual savings rather than 25-30 million it expected earlier.
($1 = 0.7709 euros)
(Reporting by Ritsuko Ando)