International Paper Co. Sets Out 8.6 Billion-Euro Smurfit Kappa Bid -- Update
March 06 2018 - 2:39PM
Dow Jones News
By Adam Clark
International Paper Co. said Tuesday that it remains ready to
discuss its rejected takeover bid for Irish packaging company
Smurfit Kappa Group PLC, as it set out the details of its 8.6
billion euro ($10.7 billion) offer.
Tennessee-based International Paper Co. said it is offering 22
euros in cash and 0.3028 new International Paper shares for each
Smurfit Kappa share. This is equivalent to 36.46 euros per Smurfit
Kappa share, International Paper said.
The offer price is a 27% premium to Smurfit Kappa's closing
share price on Monday, said International Paper. The company added
that the deal would leave Smurfit Kappa shareholders with 15% of
the enlarged International Paper.
Earlier on Tuesday, Smurfit Kappa rejected the unsolicited
offer, saying it fails to reflect the group's strong growth
prospects and attractive industry outlook, although it didn't
disclose the details of International Paper's approach. Smurfit
Kappa had a market capitalization of 6.8 billion euros at the close
of business Monday.
In its statement setting out the offer, International Paper said
it is disappointed its approach was made public without further
discussion, but that it "remains ready to engage" with Smurfit
Kappa's board and shareholders.
Shares in Smurfit Kappa closed up 19% at 33.86 euros on
Tuesday.
Write to Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
March 06, 2018 14:24 ET (19:24 GMT)
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