International Paper Pulls Proposed EUR8.9 Billion Bid for Smurfit Kappa -- Update
06 Juni 2018 - 9:32AM
Dow Jones News
(Adds response from Smurfit Kappa.)
By Ian Walker
International Paper Co. (IP) said late Tuesday that it won't go
ahead with its proposed 8.9 billion-euro ($10.4 billion) offer for
Smurfit Kappa Group PLC (SMFKY), blaming a lack of engagement by
the Irish company's board of directors and management.
"While we continue to believe in the strategic and financial
potential of this combination, our commitment was to proceed in a
disciplined manner that would create value for both sets of
shareholders," said Mark Sutton, International Paper's chairman and
chief executive.
The statement came before an Irish Takeover Panel deadline of
0600 GMT Wednesday
Responding to the announcement Smurfit Kappa said Wednesday that
the board believes it has superior prospects as a standalone
business and remains excited about the group's prospects.
It reiterated the company's expectations that 2018 earnings
before interest, taxes, depreciation and amortization will be
"materially" better than 2017. For the year ended Dec. 31 the
company reported adjusted Ebitda, which out strips acquisitions,
disposals and other one-off items, of EUR1.24 billion.
"We expect the second quarter to represent another strong
performance and we will provide a further update at the time of our
half year results on August 1st," said Chief Executive Tony
Smurfit.
Smurfit Kappa has rejected two offers from International Paper
since its first approach in February. The latest one--EUR25.25 in
cash and 0.3028 new International Paper shares for each Smurfit
Kappa share--was rejected, with Smurfit saying it believed
shareholders' best interests were served by it pursuing its future
as an independent company.
International Paper's first approach announced in March was
EUR22 in cash and 0.3028 new International Paper shares for each
Smurfit Kappa share.
International Paper previously said it wouldn't proceed with a
bid without support from Smurfit's board.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
June 06, 2018 03:17 ET (07:17 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Smurfit Kappa (PK) (USOTC:SMFKY)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Smurfit Kappa (PK) (USOTC:SMFKY)
Historical Stock Chart
Von Jun 2023 bis Jun 2024