Shares in Smurfit Kappa have risen even further this morning as the board reaffirmed its rejection of a takeover offer worth €8.6 billion from International Paper.
Shares in the paper packaging firm, headquartered in Dublin which surged more than 18% on Tuesday after it flagged the approach, rose a further 4% to €35.20 shortly after stock markets opened this morning, reports Irish Times.
US firm International Paper offered €22 in cash and 0.3028 new International Paper share for each Smurfit share.
The paper packaging firm, yesterday issued a statement to highlighted that it's US rival suggested that it would acquire Smurfit Kappa and Smurfit Kappa shareholders would receive a combination of cash and a minority holding in the combined business.
“The Board of Smurfit Kappa has already carefully considered, with its financial advisers, the Proposal in detail and has unanimously rejected it on the basis that it fails entirely to reflect the Group’s superior prospects as an independent business and represents a valuation multiple significantly below recent comparable transactions.” Smurfit Kappa said in a statement.
Last month, Smurfit Kappa reported revenue of €8.56 billion in its 2017 full-year results, marking an increase of 5% compared to the previous year.
The packaging giant advised that shareholders are strongly advised to take no action.
A spokesperson for the company said, "There can be no certainty that any firm offer will be made, nor any certainty as to the terms on which any firm offer might be made by International Paper."
© 2018 - Checkout Magazine by Donna Ahern