Smurfit Kappa: International Paper declines from bidding
(CercleFinance.com) - International Paper confirmed on Wednesday that it will not make an offer for Smurfit Kappa Group, given the "lack of engagement" from the Irish paper-based packaging group's board and management.
After making an offer to acquire the company in February, IP made a revised offer in March, although Smurfit Kappa again rejected this approach, saying that the proposal failed to reflect its value and growth prospects.
"While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders," said Mark Sutton, chairman and CEO of International Paper.
The US company now plans to remain focused on executing its strategy and said it was "excited" about its prospect.
After this announcement, Smurfit Kappa confirmed its "strong" 2018 outlook, saying that EBITDA will be materially better than in 2017.
Its shares are currently up 3% in London.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
After making an offer to acquire the company in February, IP made a revised offer in March, although Smurfit Kappa again rejected this approach, saying that the proposal failed to reflect its value and growth prospects.
"While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders," said Mark Sutton, chairman and CEO of International Paper.
The US company now plans to remain focused on executing its strategy and said it was "excited" about its prospect.
After this announcement, Smurfit Kappa confirmed its "strong" 2018 outlook, saying that EBITDA will be materially better than in 2017.
Its shares are currently up 3% in London.
Copyright (c) 2018 CercleFinance.com. All rights reserved.