Smurfit Kappa Reiterates International Paper Rejection -- Update

Date : 17/05/2018 @ 01:05
Source : Dow Jones News
Stock : Smurfit Kappa Group (PC) (SMFKY)
Quote : 28.215  -1.005 (-3.44%) @ 08:04
Smurfit Kappa Group Plc share price Chart

Smurfit Kappa Reiterates International Paper Rejection -- Update

Smurfit Kappa Group Plc (USOTC:SMFKY)
Historical Stock Chart

1 Year : From Jan 2018 to Jan 2019

Click Here for more Smurfit Kappa Group Plc Charts.

(Adds Smurfit Kappa response.)


By Adam Clark


Irish packaging company Smurfit Kappa Group PLC (SK3.DB) on Wednesday reiterated its rejection of a 8.9 billion euro ($10.6 billion) takeover approach from International Paper Co. (IP) after regulators set a deadline for a formal bid.

"The board continues to believe that the best interests of the group's stakeholders are served by pursuing its future as an independent company," said Smurfit Kappa.

Smurfit Kappa also said it welcomes an Irish takeover panel ruling that said International Paper has until June 6 to make a binding offer or walk away.

In its response to the takeover panel announcement, released earlier on Wednesday, International Paper said it won't proceed to a formal binding offer without support from Smurfit's board.

International Paper said it believes the two companies should meet to discuss the potential deal, which was revealed by Smurfit Kappa in early March.

Smurfit Kappa has rejected the approach as failing to reflect its growth prospects. The latest proposal is priced at EUR25.25 in cash and 0.3028 new International Paper shares for each Smurfit Kappa share. Based on International Paper's closing share price on Tuesday, this values the bid at about EUR37.54 a Smurfit Kappa share.

On Wednesday, International Paper said it would allow Smurfit Kappa shareholders to vary the proportion of cash and shares received in the deal, and would seek a secondary listing on the London Stock Exchange following the takeover.

At 1420 GMT, Dublin-listed shares in Smurfit Kappa were down 5.2% at EUR33.64.


Write to Adam Clark at; @AdamDowJones


(END) Dow Jones Newswires

May 16, 2018 10:50 ET (14:50 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Your Recent History
Euro vs Au..
US Dollar ..
BHP Bilito..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:au D:20190123 02:12:49