Solid Paper Gains At Champion

Paper stocks have been on fire of late, partly because of an industry upturn stemming from a lift in overseas demand, including a pickup in Asia. There are also expectations of more takeovers. One stock on a tear is Champion International (CHA), a producer of paper and wood products, which leaped from 48 on Oct. 5 to 59 on Nov. 10. In mid-October, Champion unveiled a plan to enhance shareholder value, including raising the dividend and buying back shares. But what has caught investors' attention is a rumor that Finland's big paper-and-forest-products company, Big Board-listed UPM-Kymmene, may make a bid for Champion.

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