Shaken to their roots
THE UPHEAVAL in Canada's forestry sector is shaking many of the biggest companies to their roots. Parent companies, strapped for cash, have stopped supporting subsidiaries that are making losses because of the low newsprint and pulp prices -- the mainstay of Canada's forestry industry.
The giant CP Forest joined a growing group of forestry companies emerging from the sheltered embrace of a controlling shareholder, when the parent company, Canadian Pacific, unloaded its entire 61 per cent stake in the subsidiary.
Meanwhile, small lumber producers have gone public, taking advantage of rocketing timber prices earlier this year.