International Paper Pulls Proposed EUR8.9 Billion Bid for Smurfit Kappa
June 06 2018 - 2:05AM
Dow Jones News
By Ian Walker
International Paper Co. (IP) said late Tuesday that it won't go
ahead with its proposed 8.9 billion-euro ($10.4 billion) offer for
Smurfit Kappa Group PLC (SMFKY), blaming a lack of engagement by
the Irish company's board of directors and management.
"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, International Paper's chairman and
chief executive.
The statement came before an Irish Takeover Panel deadline of
0600 GMT Wednesday
Smurfit Kappa has rejected two offers from International Paper
since its first approach in February. The latest one--EUR25.25 in
cash and 0.3028 new International Paper shares for each Smurfit
Kappa share--was rejected, with Smurfit saying it believed
shareholders' best interests were served by it pursuing its future
as an independent company.
International Paper's first approach announced in March was
EUR22 in cash and 0.3028 new International Paper shares for each
Smurfit Kappa share.
International Paper previously said it wouldn't proceed with a
bid without support from Smurfit's board.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
June 06, 2018 01:50 ET (05:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Smurfit Kappa (PK) (USOTC:SMFKY)
Historical Stock Chart
From May 2024 to Jun 2024
Smurfit Kappa (PK) (USOTC:SMFKY)
Historical Stock Chart
From Jun 2023 to Jun 2024