<B>Report Claims AssiDoman Units on Block</B>

Swedish forestry company AssiDoman declined to comment on a newspaper report that Dutch-based Kappa Packaging and South African Mondi were in talks to buy its containerboard and corrugated unit.

"We do not comment on specific companies. We are in talks with various partners over a merger or sale," AssiDoman spokeswoman Berit Hallberg told Reuters.

The Financial Times newspaper reported Kappa and Mondi were in talks to buy the container board and corrugated operations of AssiDoman.

Kappa Packaging is owned by British venture capital firms CVC Capital Partners and Cinven.

AssiDoman is the third largest supplier of corrugated and containerboard in Europe. The company already sold off its paper bag division to Austria's Frantschach and spun off its packaging paper unit to form a joint company with the same division of Finnish-Swedish Stora Enso.

Last month AssiDoman said it was in talks about the sale or merger of its corrugated and containerboard division as a part of the company's restructuring to what it calls a more focused, forest-owning company.