Press release, October 5, 2007
Stora Enso receives warning for breaching Exchange rules
The Disciplinary Committee of OMX Nordic Exchange Helsinki has issued Stora Enso
Oyj with a warning for breaching stock exchange rules. The company violated the
requirement for simultaneous disclosure when disclosing the interim report.
Stora Enso Oyj shares had been traded at deviating prices before the moment the
interim report was published on July 26, 2007. The company's share price fell by
approximately 4.7 per cent before the information was published in OMX Nordic
Exchange Helsinki (“Exchange”).
When Exchange enquired about the reason for this, it transpired that information
regarding the interim report had been available even though the company had not
yet published its interim report. Stora Enso asked for the trading in its shares
to be suspended, and this was done on July 26 at 12:37. The reason for
suspending trading was the fact that the company's interim report had been
leaked before it was published. Stora Enso Oyj published its interim report on
July 26 at 12:51.
The company stated that the mistake was caused by its then sub-supplier
publishing, contrary to instructions issued by the company, the second quarter
interim report on the company's website about one hour before the agreed
publication time. The mistake was the result of human error at the sub-supplier.
The company further stated that it had understood the seriousness of the
situation and, among other things, would review its internal instructions
regarding the matter.
According to Exhange rules (3.1.1.) the purpose of disclosure requirements is to
make sure that all market participants have contemporaneous access to true and
fair information regarding listed securities and their issuers such that an
informed assessment can be made of the value of shares and other listed
securities. Investors use information disclosed by issuers in evaluating their
listed securities. The disclosure of information refers to its simultaneous
delivery to the Exchange and to major mass communications media (rule 3.1.8).
The Disciplinary Committee stated, among other things, that the interim report
had not been made available simultaneously to all market participants, which
meant that the requirement of simultaneous disclosure had been violated. Since
this was a question concerning one of the key obligations of OMX rules, the
violation had to be deemed serious, particularly when it was shown that it had
influenced trading. Using a sub-supplier to fulfill the disclosure obligations
did not mitigate the company's responsibility.
On the other hand, the
Disciplinary Committee took the view that according to the account submitted,
the company's communications arrangements were as such appropriate. The mistake
could be seen as an isolated incident resulting from human error. The company
had also taken corrective action immediately after detecting the mistake. These
factors were taken into account when deciding on the appropriate sanctions.
The OMX Disciplinary Committee found that Stora Enso Oyj had, when publishing
its interim report on July 26, 2007, violated the Exchange rules. Committee
issued the company with a warning.
For further information, please contact:
Timo Rintanen, Secretary of the Disciplinary Committee +358 9 6166 7640
Janne Seppänen, Head of Surveillance, OMX Nordic Exchange Helsinki, +358 9 6166
7382
OMX Nordic Exchange Helsinki donates its disciplinary fines to a foundation that
sponsors research related to securities markets in Finland and Sweden.
Further information about the Disciplinary Committee, its members and the
regulations of the Disciplinary Committee are available from the OMX Nordic
Exchange Helsinki website at www.omxgroup.com/nordicexchange.
OMX Nordic Exchange Helsinki market supervision
OMX Nordic Exchange Helsinki investigates all suspected rule violations. For
minor violations, companies are given a written warning while serious cases are
brought to the Disciplinary Committee for decision.
The members of the Disciplinary Committee are legal and financial experts
independent of OMX Nordic Exchange Helsinki. The Chairman of the Committee is
Mr. Mikko Tulokas, Supreme Court Justice, and the members are Professor Risto
Nuolimaa, Professor Kalervo Virtanen and Mr. Simo-Pekka Helander, LL.M.
