Smurfit Kappa Rejects Revised Proposal From International Paper
March 26 2018 - 2:55AM
Dow Jones News
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)
Copyright (c) 2018 Dow Jones & Company, Inc.
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