In the year that has passed, Smurfit Kappa has seen its value fall to €3.4 billion below what International Paper was offering the company.
Almost a year to the day, IP made an approach for Smurfit Kappa, valuing the Irish company at €9.4 billion.
However, the company’s shares closed yesterday at €25.52 per share, valuing the company at just above €6 billion.
Takeover Struggle
IP yesterday failed to rule out another approach for Smurfit Kappa, according to the Irish Independent, adding that it would not comment on speculation.
Smurfit Kappa resisted a number of takeover bids from the US company, arguing it was better served pursuing its future independently.
After two bids rejected, Irish takeover laws prevented IP from making another offer for a year, which ends in two months.
IP became interested in Smurfit Kappa as the Irish-based packaging giant made strides in the US. The group said at the time that there was a “compelling strategic and financial logic” for a combination.
Smurfit Kappa, however, told its shareholders that the deal “fundamentally undervalues the group”.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.
