International Paper working on EUR 36 per share bid for Smurfit Kappa, Deutsche Bank advising
International Paper, a listed Memphis, Tennessee-based paper and packaging manufacturer, has hired Deutsche Bank to advise on a potential takeover offer for listed Irish rival Smurfit Kappa, Sky News reported. The report cited one City source who said International Paper had been mulling an offer at around EUR 36 (USD 38.17) per share for Smurfit.
Sources this weekend added the caveat that International Paper had yet to make a formal approach to Smurfit s board, and that International Paper might yet decide against proceeding with an offer, according to the report.
As previously reported, Smurfit’s share price gained earlier this week on talk of an approach from International Paper or Australian rival Amcor.
An offer at EUR 36 per share would represent a valuation exceeding GBP 6bn (EUR 8.27bn) for Smurfit. However, adding in Smurfit’s debt and a takeover premium could push the value of any deal to more than GBP 8bn, the item said.
The article noted that some analysts had this week downplayed the chances of an offer for Smurfit. The Financial Times’ Lex column on Friday, 10 April suggested that the rise in Smurfit’s share price this year could be due to momentum alone.
Smurfit refused to comment on Saturday, 11 April, the item said. International Paper did not reply when asked for comment, the report added.
Smurfit Kappa’s share price closed EUR 0.14 down at EUR 28.91 in Dublin on Friday, giving the company a market capitalisation of EUR 6.78bn.
Sky News, previously reported intelligence, Financial Times