Smurfit Kappa rejects renewed offer from International Paper

Smurfit Kappa said it had rejected an increased offer from International Paper Company (IPC) which valued it at €37.54, saying it “fundamentally undervalues the group”.

IPC offered €25.25 in cash and 0.3028 new shares of IPC common stock for each Smurfit Kappa ordinary share.

Smurfit chairman Liam O’Mahony said the revised offer did not offer Smurfit Kappa shareholders “much more than compensation for the fall in International Paper’s share price since since IPC's first offer 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," he said.

"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."

"The board unanimously reaffirms its belief that it is in the best interests of the group’s stakeholders for Smurfit Kappa to pursue its future as an independent company, headquartered in Ireland, operating as the European and Pan-American leader in paper-based packaging.”