Update: APP denies plan to buy Eldorado Brasil

[JAKARTA] Indonesia's Asia Pulp & Paper Co (APP) and its parent Sinar Mas Group denied they were planning to buy pulpmaker Eldorado Brasil Celulose SA, which is up for sale after its controlling shareholders got ensnared in Brazil's worst corruption probe.

Two people familiar with the situation had told Reuters on Sunday APP is in advanced talks to buy control of Eldorado Brasil. O Globo newspaper had first reported APP's talks earlier in the day. "We would like to inform you that Asia Pulp and Paper (APP) is not acquiring Eldorado Brasil. However, Brazil remains an important market for us and we may explore the possibilities of further investment in the future," APP said in a statement.

Gandi Sulistiyanto, managing director of Sinar Mas, denied in a telephone text message that there was a plan to buy the company and pointed to the APP statement.

REUTERS