The Swedish state-owned forestry company Sveaskog has started talks to discuss the possibility of making a takeover offer for all of the shares in AssiDomn.

A spokeswoman for AssiDomn said that a takeover offer of that sort would only be made once the company had carried out its planned dividend of shares in Billerud and its cash transfer of 765m (SEK12bn) through a share redemption announced in May this year.

Shares in AssiDomn soared by over 17%, to 17 (SEK262) per share after the announcement.

"We hope to conclude the talks as quickly as possible, after which additional information will be provided," said the spokeswoman.

The Swedish state owns just over 35% of AssiDomn.