>>> Israeli digital healthcare companies attract foreign investors - Analysis

Israeli digital healthcare companies attract foreign investors 

Israeli digital healthcare companies are ripe for foreign investment as the healthcare and tech sectors continue to converge, several industry sources said.

Triggered by initiatives from the 2010 Affordable Healthcare Act in the US, including those that require more efficiency in hospitals, as well as the shift in healthcare to the consumer - such as the rise of wearables, foreign companies looking to lead the digital healthcare space are on the prowl for solutions to give them the edge over competitors, they said.

Israel is increasingly attractive to foreign investors as valuations of local companies remain lower than global counterparts because less capital is available locally to startups in the space, Levi Shapiro, General Partner at Veritas Ventures Digital Health Fund in Israel and Lead Organizer of the mHealth Israel meetup community, said.

Globally, digital health companies raised over USD 4.1bn in venture funding in 2014, according to US-based digital health fund Rock Health.

In addition to funding opportunities, Israel is attractive for its talent and experience, a senior healthcare executive said, noting that Israel has over 20 years experience in the management of digital health records.

Data analytics and health IT

Israeli companies in fields such as data analytics, biotech and IT that are offering solutions that can further enable the personalization and consumerization in healthcare are likely to draw investor attention, sources said. EarlySense and MediSafe Project are examples, two industry investors said.

On 20 January, EarlySense, which develops a wireless patient monitoring device that utilizes analytics and health IT, announced that it raised USD 20m in a Series F round led by Samsung Ventures. The partnership will aim to bring EarlySense's sensing and monitoring technology, which has been commercialized in the hospital setting, to the home/consumer market.

Earlier this month it was revealed that MediSafe Project, which offers a cloud-synced mobile medication management system, raised USD 6m, including from Qualcomm Ventures. The company will move its headquarters to the US, which is its main market, and expand its business team to better scale up. The move is part of an overall trend where Israeli digital health companies are formed here and move abroad to scale up, Shapiro noted.

Other interesting companies include Treato and Tyto Care, the first industry investor said, adding that there are an estimated 200 Israeli companies in digital health.

Treato, which has raised at least USD 20m to date, offers a healthcare intelligence service that uses data analytics to provide insight on drugs and conditions to the public and healthcare communities. Tyto Care, which raised USD 4m in a Series A round in May 2014, has developed a platform and handheld device that enables physical examinations to be performed remotely by anyone.

Investors

As the industry is still nascent, most deals will likely be investments in early stage companies and range from seed level to Series B rounds, Shapiro said. Most investors will likely be corporate and strategic partners, said an industry consultant.

Companies looking in Israel range from consumer internet companies such as Apple [NASDAQ: AAPL], South Korea-based Samsung [KRX: 005930], and Microsoft [NASDAQ: MSFT] to retail chains such as Walgreens [NYSE: WAG], CVS [NYSE: CVS], and RightAid [NYSE: RAD]. Other players include healthcare IT companies, pharma, hospital chains, and insurance providers.

There is an active accelerator ecosystem in the US and Israel, as well, Shapiro noted. In 2014, Fortune 500 healthcare company Becton, Dickinson and Company (BD) [NYSE: BDX] partnered with Microsoft and US-based accelerator Healthbox to offer a healthcare-focused class in Microsoft's Tel Aviv accelerator.

BD is particularly interested in information-enabled devices, big data analytics/population health management solutions, and next generation sequencing, BD executives noted during a presentation during an mHealth Israel event on 19 January.

In addition to BD's joint accelerator effort, Inspire Healthcare Innovations, a joint venture between Holland-based Philips Healthcare [NYSE: PHG] and Israel-based Teva Pharmaceuticals [NYSE: TEVA; TASE: TEVA], won a tender in the summer of 2014 to launch a technological incubator focused on medical innovations and technologies.

(BFW) Royal Mail, PostNL M&A May Have 70% Upside for Both: MainFirst

Royal Mail, PostNL M&A May Have 70% Upside for Both: MainFirst
2015-01-26 15:44:05.415 GMT


By Gaurav Panchal
(Bloomberg) -- A Royal Mail, PostNL merger,may lead to
valuation upside of up to 70% for both, create a far more
investable entity, MainFirst analyst Tobias Sittig says in a
note ‘examining the implications of a potential merger.’
* Royal Mail would gain much-needed expertise in building
state-of-the-art parcel network, deal a blow to mail
competition and strengthen GLS: Sittig
* PostNL would shore up its balance sheet, gain growth
angle beyond currently challenged Benelux niche: Sittig
* GLS, PostNL parcels a good fit in Benelux: MainFirst
* Says PostNL’s 15% stake in TNT is only a burden for PostNL
* TNT stake may be an interesting bargaining chip for
future consolidation of Europe market for larger entity:
Sittig
* TNT stake may be an interesting bargaining chip for
future consolidation of Europe market for larger entity:
Sittig</li></ul>
* Says with Dutch, U.K. regulatory reviews pending, U.K.
elections in May, any consolidation move unlikely before 2H
* MainFirst has outperform ratings on PostNL, Royal Mail
* Jan. 2013: UPS’s Aborted TNT Takeover Bid Formally Blocked
by EU Regulators
* Oct. 2005: Royal Mail pushed by govt to sell GLS arm, got
approaches from FedEx, UPS, TNT: Telegraph


For Related News and Information:
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To contact the reporter on this story:
Gaurav Panchal in London at +44-20-3525-0511 or
gpanchal2@bloomberg.net
Gaurav Panchal

WSJ : European Regulators Pressure Big Banks to Increase Capital

European Regulators Pressure Big Banks to Increase Capital
Banks Encouraged to Raise Capital Well Above Formal Regulatory Limits

LONDON—European regulators are turning up the pressure on large banks to further strengthen their balance sheets amid nagging concerns about Europe’s financial and economic health.

The European Central Bank’s bank-regulatory arm in recent weeks wrote letters to most of the eurozone’s largest banks, instructing some to increase their capital cushions to levels well above formal regulatory requirements and pushing others to improve their corporate governance, according to banking and regulatory officials.

Banking executives say the mounting pressure from the ECB, which last November became responsible for supervising the eurozone’s largest lenders, is likely to translate into a flurry of banks selling new shares, cutting dividends or finding other ways to improve their ability to absorb future losses.

“In 2015, the big players will have to consider capital increases,” said Carlo Messina, chief executive of Italy’s second-largest bank, Intesa Sanpaolo Spa. Mr. Messina and other bank CEOs said in interviews that banks will need to achieve capital ratios well above 11% of their risk-adjusted assets if they want to also pay dividends—a level that could rise much higher for banks deemed particularly risky. “Otherwise you are too close to the level you have to maintain,” Mr. Messina said. While European banks have raised hundreds of billions of euros of new capital in recent years, some large lenders’ capital ratios remain in the high single or low double digits.

One major bank, Spain’s Banco Santander SA, kick-started the capital-raising process earlier this month when it raised €7.5 billion ($8.44 billion) by selling new shares. Santander officials say their unexpected capital hike wasn’t a response to pressure from the ECB, although regulators did welcome the move.

Deutsche Bank AG , meanwhile, is exploring the sale or spinoff of part of its retail-banking business in ways that could boost capital, The Wall Street Journal reported this month. And Société Générale SA this month announced it is splitting the jobs of chairman and CEO, bringing the French bank more in line with what corporate-governance experts consider to be best practices.

The ECB letters reflect lingering concerns among regulators and investors about the financial health of some of the eurozone’s largest banks, even after regulators have repeatedly assured the public that major lenders are on sound footing. Most recently, European “stress tests” in October found that all but 25 of Europe’s top 130 banks have enough capital to withstand a deteriorating economic environment. Most of those 25 were small and midsize banks that said they are already on track to boost their capital.

But with the continent stuck in economic doldrums, ECB officials are scrambling to further fortify top banks, pushing for capital ratios that in some cases are nearly quadruple where they stood before the financial crisis, bank executives say.

The ECB’s Single Supervisory Mechanism, as its new bank regulator is known, started sending out the letters in December. Each letter offers a different capital ratio that the lender needs to hit, based on factors including the perceived riskiness of that bank’s assets and the quality of capital it is currently counting toward regulatory minimums, according to people who have read the letters.

“They say, based on your risks, you need more capital,” said Andrea Enria, the chairman of the European Banking Authority, which conducts stress tests and sets regulatory standards across the European Union. The letters are partly a response to significant discrepancies in how different banks calculate capital, Mr. Enria said.

Some bank CEOs say they received letters that also included a focus on strengthening their financial transparency and their corporate governance.

The ECB gave banks a few weeks to accept or reject the findings of the letters, or to argue that they already have laid out plans to fill any capital holes, these people said. Many banks submitted their responses in the past two weeks. Next month, the ECB will go back to the banks with final verdicts about what steps they need to take, likely setting in motion the capital-raising process, the people said.

The letters are likely to become an annual rite, part of the ECB’s Supervisory Review and Evaluation Process, known in industry circles as SREP, according to regulatory officials.

The tougher ECB demands have been the source of grumbling among bank executives gathered at last week’s World Economic Forum in Davos, Switzerland. The regulations are “totally a moving target,” said the CEO of a major eurozone bank. “It reduces the flexibility you have,” another said. Others said it would constrain lending.

“If you push up capital ratios, obviously credit is a little bit reduced by that,” Bank of Italy Governor Ignazio Visco said in an interview. “The banks may be right there needs to be greater consistency. This is a learning process.”

Not all bank executives are complaining, though. Mr. Messina said Intesa is one of the few institutions that already has plenty of capital. “I have a competitive advantage that is unique,” he said.

(BN) OPEC’s El-Badri Says $200 Oil Possible With Lack of Spending

didn't say when...
OPEC’s El-Badri Says $200 Oil Possible With Lack of Spending (2)
2015-01-26 14:54:39.860 GMT


(Updates with analyst comment in 10th paragraph.)

By Grant Smith
(Bloomberg) -- OPEC’s secretary-general said oil prices as
high as $200 a barrel are possible if producers fail to invest
in new supply. Crude futures pared losses in London and New
York.
“If you don’t invest in oil and gas, you will see more
than $200,” Abdalla El-Badri said in an interview in London on
Monday, without giving a timeframe. Brent, a global benchmark,
erased a decline immediately after his comments, before resuming
its slide..
Crude prices tumbled 48 percent last year as Saudi Arabia
and other members of the Organization of Petroleum Exporting
Countries said they wouldn’t curb output in response to a supply
glut. The International Energy Agency, the Paris-based adviser
to 29 nations, said Jan. 21 that a decline in prices may deter
investment in all types of energy.
“He is raising a valid concern that falling investments
due to the current price collapse may leave us with little oil
coming out of the ground in a few years time,” Ole Sloth
Hansen, an analyst at Saxo Bank A/S in Copenhagen, said by e-
mail. “A move back above $100 will bring the shale oil drillers
out in force as they can relatively quickly react to rising
prices” meaning $200 probably won’t happen.

Investments Canceled

The global oil market is currently oversupplied by about
1.5 million barrels a day and OPEC is open to a meeting with
nations outside the 12-nation group to tackle the glut, El-Badri
said today. The market will be brought back into balance by a
reduction in supply, rather than an increase in demand, he said.
Investment in oil production will fall by $100 billion, or
15 percent, this year compared with 2014, Fatih Birol, chief
economist at the IEA, said Jan. 21 at the World Economic Forum
in Davos, Switzerland. This means oil at $45 a barrel will be a
temporary phenomenon, he said.
Brent crude for March settlement rose as high as $49.29 on
the ICE Futures Europe exchange in London, and was trading at
$48.48 at 2:35 p.m. local time. West Texas Intermediate, the
main U.S. grade, advanced as much as 1.1 percent to $46.11 on
the New York Mercantile Exchange, before falling to $45.43.
U.S. crude production rose to 9.19 million barrels a day on
Jan. 9, the fastest pace in three decades, according to the
Energy Information Administration, the Energy Department’s
statistical arm. The boom was driven by a combination of
horizontal drilling and hydraulic fracturing, or fracking, which
has unlocked supplies from shale formations including the Eagle
Ford and Permian in Texas and the Bakken in North Dakota.

Drilling Rigs

As prices slumped, oil drillers have reduced the number of
rigs operating in the U.S. to the lowest in two years, according
to data from Baker Hughes Inc. Jan. 23. Companies idled 49 U.S.
oil rigs last week, bringing the total to 1,317 in the seventh
weekly decline, it said.
“The current price cannot sustain non-OPEC supply where it
was going the last year or so,” Robert Campbell, head of oil
products research at London-based Energy Aspects Ltd., said by
phone from New York. “This is not just U.S. shale, this is all
sorts of places: North Sea, Russia.”
Most projects to develop oil resources in OPEC members will
proceed at current prices, although some may be canceled, El-
Badri said.


For Related News and Information:
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--With assistance from Naomi Christie and Rupert Rowling in
London.

To contact the reporter on this story:
Grant Smith in London at +44-20-3525-7353 or
gsmith52@bloomberg.net
To contact the editors responsible for this story:
Alaric Nightingale at +44-20-3525-3488 or
anightingal1@bloomberg.net
James Herron, Rachel Graham

>>> The Kooples up for sale

The Kooples up for sale
The Kooples, the French fashion house controlled by its three founders, brothers Raphael, Laurent and Alexandre Elicha, has been put up for sale, newsletter Before Dinner reported. The unsourced report said that the brothers are considering leaving France for Israel and could sell their business in the process. The report added that investment fund LBO France has also decided to divest its 20% stake in the company.

According to the report, The Kooples could be valued at between EUR 280m and EUR 420m, or 8 to 12 tiles EBITDA. The company generates annual revenues of EUR 150m.

before dinner

>>> US Early premarket gappers

Early premarket gappers

Gapping up: OCN +33.9%, ASPS +22%, HWAY +11.8%, CLF +8.8%, RY +8%, FXCM +7.6%, LF +6.7%, CLMT +4.9%, CLMT +4.9%, HCA +4.5%, CFG +4.5%, BCRX +3.7%, NVO +2.8%, SHPG +2.3%, ORAN +2%, ALU +1.7%, THR +1.5%, HL +1.5%, YHOO +1.3%, BUD +1.2%, TEF +1.1%, NOK +1%, IBM +0.9%

Gapping down: ANCI -11.2%, MHR -9.3%, PT -6.7%, NBG -6%, KGC -5.9%, OIBR -5.4%, GREK -4.1%, CIG -3.3%, STO -3.1%, AEM -2.9%, AU -2.7%, GG -2.7%, AG -2.4%, GDX -2.3%, GFI -2.2%, YNDX -2%, ABX -1.9%, SLV -1.9%, TEVA -1.8%, SDRL -1.8%, NEM -1.7%, RIG -1.5%, BP -1.4%, REGN -1.2%, PROV -1.2%, BHP -1.1%, RDS.A -1.1%, EGO -1.1%, REMY -1%, GLD -1%, AA -1%

>>> Emerson disclosed 3-month orders growth data; Dec -5 to 0%

Emerson disclosed 3-month orders growth data; Dec -5 to 0%

Trailing three-month orders decreased slightly reflecting mixed demand among geographies and markets and strength in the U.S. dollar, which deducted 5% points through translation. Underlying orders grew moderately, led by Process Management and Commercial & Residential Solutions. Given the continued strength of the U.S. dollar against most foreign currencies, the impact on full year GAAP reported sales is expected to be 4 to 5% points. The global economies are clearly in a transition period with a significantly lower cost of oil, a stronger U.S. dollar and continued weakness in Europe.

(BUS) MWV and RockTenn Agree to Combination Creating a $16 Billion Global Packag

BN 01/26 11:01 *MWV & ROCKTENN:MWV HOLDERS TO HOLD 50.1% OF NEW COMPANY
BN 01/26 11:01 *ROCKTENN HOLDERS ENTITLED TO ELECT 1 SHRS OF NEWCO
BFW 01/26 11:01 *MEADWESTVACO, ROCKTENN TO MERGE IN DEAL WITH EQUITY VALUE $16B
BN 01/26 11:01 *MWV & ROCKTENN: BOARD TO HAVE 8 FROM ROCKTENN, 6 FROM MWV
BN 01/26 11:01 *MEADWESTVACO, ROCKTENN TO MERGE IN DEAL WITH EQUITY VALUE $16B
BN 01/26 11:00 *MWV & ROCKTENN : LUKE TO BE NON-EXECUTIVE CHAIRMAN
BN 01/26 11:00 *MWV & ROCKTENN : VOORHEES WILL SERVE AS CEO & PRESIDENT
BN 01/26 11:00 *MWV HOLDERS WILL GET 0.78 SHRS OF NEWCO FOR EACH SHARE
MWV and RockTenn Agree to Combination Creating a $16 Billion Global Packaging Leader
2015-01-26 11:00:00.195 GMT

MWV and RockTenn Agree to Combination Creating a $16 Billion Global
Packaging Leader

* Two Industry Leaders to Create a Powerful Global Provider of Consumer and
Corrugated Packaging Solutions
* Combined Company Positioned to Generate Substantial Cash Flow to Deliver
Superior Growth and Strong Shareholder Returns
* Total Annual Synergies of $300 Million to be Achieved over Three Years
* Expect to Maximize the Value of MWV’s Pension Surplus Through Plan
Consolidation
* Previously Announced Tax-Free Spin-off of MWV Specialty Chemicals to be
Completed Post-Closing

Business Wire

RICHMOND, Va. & NORCROSS, Ga. -- January 26, 2015

Rock-Tenn Company (“RockTenn”) (NYSE:RKT) and MeadWestvaco Corporation (“MWV”)
(NYSE:MWV) today announced that they have entered into a definitive
combination agreement to create a leading global provider of consumer and
corrugated packaging (“NewCo”) in a transaction with a combined equity value
of $16 billion. The combined company, to be named prior to closing, will have
combined net sales of $15.7 billion and adjusted EBITDA of $2.9 billion,
including the impact of $300 million in estimated annual synergies to be
achieved over three years.

Under the terms of the agreement, which has been unanimously approved by the
boards of directors of both companies, MWV stockholders will receive 0.78
shares of NewCo for each share of MWV held. RockTenn shareholders will be
entitled to elect to receive either (a) 1.00 shares of NewCo or (b) cash in an
amount equal to the volume weighted average price of RockTenn common stock
during a five-day period ending three trading days prior to closing for each
share of RockTenn held. The cash and stock elections by RockTenn shareholders
will be subject to proration such that the resulting ownership of NewCo will
be approximately 50.1% by MWV shareholders and 49.9% by RockTenn shareholders,
and based on the shares outstanding today, approximately 7% of RockTenn shares
will receive cash in lieu of stock. This targeted ownership ratio of NewCo
will facilitate the continued favorable tax attributes of the previously
announced spin-off of MWV’s specialty chemicals business, which the parties
intend to complete after the closing of the business combination.

Steven C. Voorhees, chief executive officer of RockTenn, said, “This
transaction brings together two highly complementary organizations to create a
new, more powerful company with leadership positions in the global consumer
and corrugated packaging markets. This is a terrific opportunity for
shareholders, employees and customers of both companies, all of whom stand to
benefit enormously from the combination. Importantly, our two companies are
also an exceptional cultural fit, sharing a commitment to exceeding customer
expectations and a focus on developing innovative packaging solutions.
Planning for the integration of these two companies has already started and we
expect to expeditiously realize the full value of cost synergies we have
identified.”

John A. Luke, Jr., chairman and chief executive officer of MWV, said, “We are
creating the leading global provider of consumer and corrugated packaging
solutions – and generating significant value for both companies’ shareholders.
This transaction is a logical step that is borne of our strategic progress and
financial success, and it offers MWV shareholders both immediate value and the
opportunity to participate in significant upside as the new company generates
substantial growth from its market-focused global strategy.”

Mr. Voorhees will serve as chief executive officer and president of the
combined company, and Mr. Luke will become non-executive chairman of the board
of directors. The board will be comprised of eight directors from RockTenn and
six directors from MWV. Other key executives and their positions will be
determined according to their strengths and will be named prior to closing.
The combined company will maintain its principal executive offices in
Richmond, Va., and will have operating offices in Norcross, Ga.

The transaction requires the approval of shareholders of both MWV and RockTenn
and is subject to receipt of certain regulatory approvals and other customary
closing conditions. Both parties target closing the transaction in the second
calendar quarter of this year.

In separate news releases, MWV and RockTenn both reported earnings for the
most recent quarter ended December 31, 2014.

Blackstone Advisory Partners L.P. served as financial adviser to RockTenn in
the transaction and provided its board of directors a fairness opinion. Lazard
has also provided a fairness opinion to RockTenn’s board of directors, as well
as advice to the Company on certain matters related to the transaction.
Cravath, Swaine & Moore LLP acted as RockTenn’s legal counsel.

MWV’s financial advisers were BofA Merrill Lynch and Goldman, Sachs & Co.
Greenhill has also provided a fairness opinion to MWV’s board of directors.
Wachtell, Lipton, Rosen & Katz acted as MWV’s legal counsel.

Additional information about the transaction can be found on the MWV and
RockTenn websites, which are listed below.

Conference Call and Webcast Details
The management of both companies will host a joint conference call and live
webcast on Monday, January 26, 2015 at 9:00 a.m. EST to discuss this
announcement. The companies welcome all members of the investment community to
listen to the call live by dialing 1-800-230-1766 in the United States or
1-612-332-0530 outside the U.S. and providing the passcode: Packaging. The
live and archived webcast of the call can be accessed at www.rocktenn.com or
www.mwv.com. An audio replay of the call will be available approximately three
hours after the call’s conclusion through Thursday, February 26, and can be
accessed by calling 1-800-475-6701 in the U.S. or 1-320-365-3844 outside the
U.S. and entering the access code: 352014.

About RockTenn
RockTenn (NYSE:RKT) is one of North America's leading providers of packaging
solutions and manufacturers of containerboard and paperboard. RockTenn's
27,000 employees are committed to exceeding their customers' expectations -
every time. The company operates locations in the United States, Canada,
Mexico, Chile and Argentina. For more information, visit www.rocktenn.com.

About MWV
MeadWestvaco Corporation (NYSE: MWV) is a global packaging company providing
innovative solutions to the world’s most admired brands in the healthcare,
beauty and personal care, food, beverage, home and garden, tobacco, and
agricultural industries. The company also produces specialty chemicals for the
automotive, energy, and infrastructure industries and maximizes the value of
its development land holdings. MWV’s network of 125 facilities and 15,000
employees spans North America, South America, Europe and Asia. Learn more at
www.mwv.com.

Forward-Looking Statements
This document contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
are typically identified by words or phrases such as “may,” “will,” “could,”
“should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe,” “target,” “prospects,” “potential” and “forecast,” and
other words, terms and phrases of similar meaning. Forward-looking statements
involve estimates, expectations, projections, goals, forecasts, assumptions,
risks and uncertainties. RockTenn and MeadWestvaco caution readers that any
forward-looking statement is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking statement. Such forward-looking statements include, but are
not limited to, statements regarding the anticipated closing date of the
transaction, the ability to obtain regulatory and shareholder approvals and
satisfy the other conditions to the closing of the transaction, the successful
closing of the transaction and the integration of RockTenn and MeadWestvaco as
well as opportunities for operational improvement including but not limited to
cost reduction and capital investment, the strategic opportunity and perceived
value to RockTenn’s and MeadWestvaco’s respective shareholders of the
transaction, the transaction’s impact on, among other things, the combined
company’s prospective business mix, margins, transitional costs and
integration to achieve the synergies and the timing of such costs and
synergies and earnings. With respect to these statements, RockTenn and
MeadWestvaco have made assumptions regarding, among other things, whether and
when the proposed transaction will be approved; whether and when the proposed
transaction will close; the results and impacts of the proposed transaction;
whether and when the spin-off of MeadWestvaco Specialty Chemicals will occur;
economic, competitive and market conditions generally; volumes and price
levels of purchases by customers; competitive conditions in RockTenn and
MeadWestvaco’s businesses and possible adverse actions of their respective
customers, competitors and suppliers. Further, RockTenn and MeadWestvaco’s
businesses are subject to a number of general risks that would affect any such
forward-looking statements including, among others, decreases in demand for
their products; increases in energy, raw materials, shipping and capital
equipment costs; reduced supply of raw materials; fluctuations in selling
prices and volumes; intense competition; the potential loss of certain
customers; and adverse changes in general market and industry conditions. Such
risks and other factors that may impact management’s assumptions are more
particularly described in RockTenn’s and MeadWestvaco’s filings with the
Securities and Exchange Commission, including under the caption “Business –
Forward-Looking Information” and “Risk Factors” in RockTenn’s Annual Report on
Form 10-K for the fiscal year ended September 30, 2014 and “Management’s
discussion and analysis of financial condition and results of operations –
Forward-looking Statements” and “Risk factors” in MeadWestvaco’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2013. The information
contained herein speaks as of the date hereof and neither RockTenn nor
MeadWestvaco have or undertake any obligation to update or revise their
forward-looking statements, whether as a result of new information, future
events or otherwise.

No Offer or Solicitation
The information in this communication is for informational purposes only and
is neither an offer to purchase, nor a solicitation of an offer to sell,
subscribe for or buy any securities or the solicitation of any vote or
approval in any jurisdiction pursuant to or in connection with the proposed
transactions or otherwise, nor shall there be any sale, issuance or transfer
of securities in any jurisdiction in contravention of applicable law. No offer
of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended, and
otherwise in accordance with applicable law.

Additional Information and Where To Find It
The proposed transaction involving MeadWestvaco and RockTenn will be submitted
to the respective shareholders of MeadWestvaco and RockTenn for their
consideration. In connection with the proposed transaction, MeadWestvaco and
RockTenn will cause the newly formed company to file with the SEC a
registration statement on Form S-4 (the “Registration Statement”), which will
include a prospectus with respect to the shares to be issued in the proposed
transaction and a preliminary and definitive joint proxy statement for the
shareholders of MeadWestvaco and RockTenn (the “Joint Proxy Statement”) and
each of MeadWestvaco and RockTenn will mail the Joint Proxy Statement to their
respective shareholders and file other documents regarding the proposed
transaction with the SEC. The definitive Registration Statement and the Joint
Proxy Statement will contain important information about the proposed
transaction and related matters. SECURITY HOLDERS ARE URGED AND ADVISED TO
READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT CAREFULLY WHEN
THEY BECOME AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE
SEC AND ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. The Registration Statement, the Joint Proxy
Statement and other relevant materials (when they become available) and any
other documents filed or furnished by MeadWestvaco or RockTenn with the SEC
may be obtained free of charge at the SEC’s website at www.sec.gov. In
addition, security holders will be able to obtain free copies of the
Registration Statement and the Joint Proxy Statement from RockTenn by going to
its investor relations page on its corporate website at http://ir.rocktenn.com
and from MeadWestvaco on its corporate website at www.mwv.com.

Participants in the Solicitation
MeadWestvaco, RockTenn, their respective directors and certain of their
executive officers and employees may be deemed to be participants in the
solicitation of proxies in connection with the proposed transaction.
Information about RockTenn’s directors and executive officers is set forth in
its definitive proxy statement for its 2015 Annual Meeting of Shareholders,
which was filed with the SEC on December 19, 2014, and information about
MeadWestvaco’s directors and executive officers is set forth in its definitive
proxy statement for its 2014 Annual Meeting of Stockholders, which was filed
with the SEC on March 26, 2014. These documents are available free of charge
from the sources indicated above, from RockTenn by going to its investor
relations page on its corporate website at http://ir.rocktenn.com and from
MeadWestvaco on its website at www.mwv.com.

Additional information regarding the interests of participants in the
solicitation of proxies in connection with the proposed transaction will be
included in the Registration Statement, the Joint Proxy Statement and other
relevant materials RockTenn and MeadWestvaco intend to file with the SEC.

Contact:

RockTenn Contacts:
Investor:
John Stakel, 678-291-7901
Senior Vice President, Treasurer
jstakel@rocktenn.com
or
Media:
Robin Keegan
Director, Corporate Communications
770-326-8245
rokeegan@rocktenn.com
or
Sard Verbinnen & Co
Bryan Locke/Carissa Felger/Elizabeth Smith
312-895-4700
or
MWV Contacts:
Investor:
Jason Thompson, 804-444-2556
Director, Investor Relations
or
Media:
Tucker McNeil, 804-444-6397
Director, Corporate Communications
mediainquiries@mwv.com
or
Joele Frank, Wilkinson Brimmer Katcher
Steve Frankel/Joseph Snodgrass
212-355-4449

-0- Jan/26/2015 11:00 GMT