Some Shareholders of Smurfit Kappa Want Company to Negotiate with International Paper
Smurfit Kappa is Europe's largest producer of paper-based packaging.
April 16, 2018 - London based newspaper The Times reported that some of Smurfit Kappa's largest shareholders would like to see the company's Board of Directors sit down and talk with International Paper about its proposed bid to buy the Dublin, Ireland based paper-based packaging producer.
In March, International Paper's last cash and shares offer was valued at EUR 37.54 per share, which amounts to about EUR 9 billion.
“Two of Smurfit Kappa's largest shareholders told The Sunday Times that it should negotiate with International Paper if it returns with another takeover bid of more than EUR 40 a share,” said The Times.
Smurfit Kappa has twice rejected proposed bids from International Paper.
“Following careful consideration, together with its financial advisers, the Board has unanimously rejected the Revised Proposal,” stated Smurfit Kappa in a press release on March 26. “The Board is resolute in its belief that the best interests of the Group's stakeholders are served by pursuing its future as an independent company, operating as the European and Pan- American leader in paper-based packaging. The Revised Proposal also fundamentally undervalues the Group and remains significantly below the valuations set by recent industry transactions.”
Smurfit Kappa and International Paper did not comment on the information provided in The Times report.
SOURCE: The Times