MEMPHIS (From news reports) -- International Paper Co. is planning to end its pursuit of Smurfit Kappa Group Plc after the Irish packaging manufacturer rebuffed two takeover offers and refused to engage, according to people with knowledge of the matter.
The firm doesn't currently intend to make a formal bid ahead of a 7 a.m. Dublin-time deadline on Wednesday, said the people, asking not to be named as the information is private. Smurfit, which rejected the earlier offers as too low, is still refusing to enter into talks with International Paper, they said. The Memphis, Tennessee-based company in turn has ruled out a hostile bid.
International Paper is planning to walk away, unless Smurfit decides to engage in talks, the people said. Representatives for both companies declined to comment.
Acquiring the company, valued at about 7.8 billion euros ($9.1 billion), would have made International Paper the No. 1 producer of cardboard boxes in Europe. The takeover saga, spanning more than three months, has seen Smurfit rebuff two bids in March: the first was a cash-and-stock proposal at 36.46 euros per share, and a second at 37.54 euros. The stock traded down at 32.74 euros as of 3:22 p.m. in Dublin. Shares of International Paper rose as much as 2.3 percent in New York.
"We wouldn't be surprised to see another try in 2019 after the one-year ban on making a new bid expires," Joshua Zaret and Evan Lee, analysts at Bloomberg Intelligence. said in a report on Tuesday. "The deal would have expanded IP's international exposure significantly, given Smurfit's strong presence in European and Latin American corrugated-packaging markets."
The takeover effort came amid a wave of industry consolidation, increasing packaging prices and global economic growth. DS Smith Plc on Monday agreed to buy Spanish packaging supplier Europac for 1.9 billion euros including debt. Earlier this year, WestRock Co. agreed to buy KapStone Paper & Packaging Corp. for about $3.5 billion.
****
EMPLOYMENT OPPORTUNITIES:
* We are looking for a Production Shift Team Leader to maintain high standards, plus ensure safety policies and regulations for a company located close to Chicago's Midway Airport. If you are experienced team leader who has a four-year degree in an engineering/technical field (paper science degree preferred, and experience in recycled linerboard or corrugating medium paper mills is a plus), we are looking for someone like you! If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* A family owned and operated corrugated packaging solutions company in Illinois is looking for an experienced Maintenance Technician to maintain production and quality by ensuring operation of machinery and mechanical equipment. Relocation and other perks are available to the right candidate who is committed to working third shift. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* Are you an experienced Maintenance Mechanic and would like to work for a family owned and operated corrugated packaging solutions company that invests in the best equipment and technology? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* A leading company in the corrugated solutions packaging business is looking for a experienced Electrician. The right candidate will possess the following skills: electrical; hydraulic; automatic drives (basic component machines 122 to 440 volts). If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
****
Jim Thompson is back again...with a new book on a taboo subject: the personalities in the pulp & paper industry. Jim has written in the past on many subjects based on his four plus decades in the worldwide pulp and paper industry. This new book is packed full of information valuable to the senior member of the industry as well as the recent entrant. A must for every pulp and paper library. |
