Business strategies

Smurfit Kappa says no to the Americans of International Paper

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Smurfit Kappa Group www.smurfitkappa.com has rejected another purchase proposition by its American rival International Paper www.internationalpaper.com. The Board of Directors of the paper and packaging producing company in Dublin has announced that, regarding the first offer on 6 March, the Americans have increased the purchase proposition, valuing each of Smurfit Kappa Group’s shares at 37.54 euros and offering more cash, which has risen to 8.9 billion euros. Nevertheless, «this offer undervalued the group» and remained «significantly below the valuations set by recent industry transactions».

Smurfit Kappa’s Board of Directors affirmed, furthermore, that this second offer does not make strategic sense for the company and strongly advised shareholders to take no action with respect to the purchase proposition by International Paper.