Smurfit Kappa's Value Falls €3.4bn Below International Paper Offer

By Publications Checkout
Smurfit Kappa's Value Falls €3.4bn Below International Paper Offer

In the year that has passed, Smurfit Kappa has seen its value fall to €3.4 billion below what International Paper was offering the company.

Almost a year to the day, IP made an approach for Smurfit Kappa, valuing the Irish company at €9.4 billion.

However, the company’s shares closed yesterday at €25.52 per share, valuing the company at just above €6 billion.

Takeover Struggle

IP yesterday failed to rule out another approach for Smurfit Kappa, according to the Irish Independent, adding that it would not comment on speculation.

Smurfit Kappa resisted a number of takeover bids from the US company, arguing it was better served pursuing its future independently.

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After two bids rejected, Irish takeover laws prevented IP from making another offer for a year, which ends in two months.

IP became interested in Smurfit Kappa as the Irish-based packaging giant made strides in the US. The group said at the time that there was a “compelling strategic and financial logic” for a combination.

Smurfit Kappa, however, told its shareholders that the deal “fundamentally undervalues the group”.

© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition. 

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