International Paper: shares jump after Smurfit rejects offer
(CercleFinance.com) - Shares in International Paper were up after Ireland's Smurfit Kappa rejected a takeover approach from the US paper and packaging maker, saying that the proposal failed to reflect its value and prospects.
Smurfit 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 that 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.
International Paper shares jumped 2.8% to 51.6 dollars in early trading on the New York Stock Exchange.
In Dublin, Smurfit Kappa shares were down 3.3% at 33.6 euros on the Irish Stock Exchange (ISE).
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Smurfit 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 that 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.
International Paper shares jumped 2.8% to 51.6 dollars in early trading on the New York Stock Exchange.
In Dublin, Smurfit Kappa shares were down 3.3% at 33.6 euros on the Irish Stock Exchange (ISE).
Copyright (c) 2018 CercleFinance.com. All rights reserved.