Jun 16, 2005. /Lesprom Network/. Shares of Paperlinx Ltd., the world's largest paper distributor, had their biggest gain in two weeks after Credit Suisse First Boston said a strike by Finnish paper makers may allow the company to increase prices. The shares have gained 21% this month. Before the rally, the stock had plunged 50% this year as the Melbourne-based company said earnings will slump because of price competition. The slide was “overdone'' and made Paperlinx a potential takeover target, Rohan Gallagher, an analyst at Credit Suisse, wrote in note to clients. Likely bidders include Finland's Stora Enso Oyj and South Africa's Sappi Ltd., Gallagher said. The six-week strike in Finland will extend for at least a further two to three weeks, creating “a window of opportunity to not only lift, but also retain price hikes,'' Gallagher said. Finnish paper makers supply about 35% of European demand for paper for magazines, 18% of demand for coated fine paper and 16% of demand for uncoated fine paper, he said. The strike will reduce Europe's production capacity by as much as 4%, pushing prices higher. Gallagher has an “outperform'' rating on Paperlinx.