Smurfit Kappa: rebuffs International Paper takeover approach
(CercleFinance.com) - Ireland's Smurfit Kappa has rejected a takeover approach from US rival International Paper, saying the proposal failed to reflect its value and prospects.
The paper-based packaging group said on Monday that its board has unanimously rejected a revised proposal of 37.54 euros for each Smurfit Kappa share.
Under the terms of the deal, shareholders would receive 25.25 euros in cash and 0.3028 new shares of International Paper common stock for each ordinary share.
Smurfit Kappa said the price fails to reflect its intrinsic value, track record and "superior" prospects as an independent business.
Moreover, the proposal does not make strategic sense, as the Irish group has a distinct business model and culture, it added.
The shares are down 2.1% at 34 euros on the Irish Stock Exchange (ISE) this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The paper-based packaging group said on Monday that its board has unanimously rejected a revised proposal of 37.54 euros for each Smurfit Kappa share.
Under the terms of the deal, shareholders would receive 25.25 euros in cash and 0.3028 new shares of International Paper common stock for each ordinary share.
Smurfit Kappa said the price fails to reflect its intrinsic value, track record and "superior" prospects as an independent business.
Moreover, the proposal does not make strategic sense, as the Irish group has a distinct business model and culture, it added.
The shares are down 2.1% at 34 euros on the Irish Stock Exchange (ISE) this morning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.