Investors pressure Smurfit Kappa to negotiate with International Paper

Some of its largest investors have been pressuring the corrugated packaging company to enter into negotiations with International Paper if it comes back with another takeover offer.

Investors pressure Smurfit Kappa to negotiate with International Paper

One investor as saying: “If International Paper makes an offer of more than €40 a share then Smurfit Kappa should start talking to the Americans.”

In late March, Smurfit rejected a second offer from Memphis-based International Paper valuing the shares at €37.54, up from €36.46.

Smurfit said at the time that the revised proposal “fundamentally” undervalued the group and was still significantly below the valuations set by recent industry transactions.

Smurfit chairman Liam O’Mahony said: “The revised proposal does not offer Smurfit Kappa shareholders much more than compensation for the fall in International Paper’s share price since that date and again entirely fails to value the group’s true intrinsic business worth and future prospects. We delivered a record performance in 2017 and underlying trading momentum has continued into 2018. Moreover, the revised proposal does not make strategic sense for Smurfit Kappa and its stakeholders. Smurfit Kappa has a distinct business model and culture as a customer-oriented, performance-led packaging leader and has already communicated a strong plan to accelerate development and performance with its 2017 year-end results.”

papnews logo

Edipap Srl | VAT IT09057310964 | Via Pordenone 13, 20132 - Milan - Italy | tel. +39 02 21711614 | |

close and go back to site

Lost your password?

close and go back to site

The website uses technical cookies. The user accept using cookies closing this banner, scrolling or further navigating the site. Extendend cookie policy

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.