Shares in Smurfit Kappa have fallen by 7.5% in London as hopes of a deal with International Paper (IP) have started to fade, according to The Irish Times.
Last week, Smurfit’s shares rose to 4.8%, a record high for the group, as investors were hopeful and expected a third and final bid. This slump in shares marks the largest single-day blow for the company’s shares since Brexit.
Shares settled at £28.80 per share, valuing the group at £6.83 (€7.78) billion, where it was valued €8.8 billion the week before.
War Of Attrition
US-based IP has already had two takeover bids rejected by the Irish paper and packaging group in February and March, who said the US group has failed to value its “intrinsic business worth and future prospects”.
IP was told to have a third bid ready and announced by June 6 by the Irish Takeover Panel, but the US paper packaging firm replied that they will not make a third bid, or push for a hard takeover unless advised by Smurfit’s shareholders.
IP will be forced to hold its peace for 12 months if it does not make a bid in the next two days.
Smurfit Kappa has strongly reiterated throughout the long and drawn-out process that its interests are best served by pursuing its future as an independent company.
The Irish Stock Exchange was closed on Monday due to the June Bank Holiday.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.