6th Mar 2018 18:40
The US based company said under its proposed bid, Smurfit shareholders would be entitled to receive
This represents a 27% premium to Smurfit's closing share price of
International Paper noted the comments from Smurfit released earlier on Tuesday, the
"International Paper believes that the transaction, if consummated, would be an excellent strategic fit that creates long-term value for both Smurfit Kappa and International Paper," said International Paper.
Having first approached Smurfit on February 14, the proposal made on February 23 was rejected on Monday evening. International Paper said it was disappointed this was made public this morning, "prior to further engagement between the parties to discuss the value creation potential of the transaction".
"Nonetheless, International Paper remains ready to engage with Smurfit Kappa's Board and shareholders to discuss both the merits of its Proposal and the reasons why International Paper believes it provides the best near and long term value for Smurfit Kappa shareholders," said International Paper.
Earlier in the day, Smurfit Kappa rejected an "unsolicited and highly opportunistic" takeover offer from International Paper. The company did not provide any details surrounding the value of the takeover offer in its statement.
Smurfit Kappa said the offer did not reflect its worth nor its prospects going forward, and would involve its shareholders receiving "a high proportion" of their consideration in International Paper shares.
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