Smurfit Kappa Rejects Revised Proposal From International Paper

   By Oliver Griffin

Smurfit Kappa Group PLC (SMFKY) said Monday that it has rejected a revised bid from International Paper Co. (IP) which offered shareholders a total of 37.54 euros ($46.37) a share.

The packaging-and-paper company said it received a revised offer from the U.S. company on March 22, after it had rejected an unsolicited offer on March 6. At the time, Smurfit Kappa said that the unsolicited bid by International Paper failed to reflect its strong growth prospects and attractive industry outlook.

Smurfit Kappa said International Paper's latest proposal offered investors EUR25.25 in cash and 0.3028 International Paper shares for each share in Smurfit Kappa.

Smurfit Kappa said the cash part of the offer would have been reduced to EUR24.605 a share after payment of its final dividend, meaning that shareholders would have effectively received EUR36.90 a share had the bid been accepted.

The company said its board had unanimously rejected the revised offer, and that it was resolute in its belief that the best interests of its stakeholders are served by pursuing Smurfit Kappa's future as an independent company.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

March 26, 2018 02:40 ET (06:40 GMT)

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