International Paper Co. dropped its plan to buy Smurfit Kappa Group PLC, after the target rejected two offers from the Tennessee-based suitor.
The U.S. pulp and paper company confirmed earlier reports on June 5, noting a lack of engagement by the target'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 International Paper CEO Mark Sutton.
Dublin-based Smurfit Kappa rejected both International Paper's sweetened proposal of €37.54 per share and its initial unsolicited offer of €36.46 per share and said the bid "undervalues the group and remains significantly below the valuations set by recent industry transactions."
Under Irish Takeover Rules, International Paper cannot make any further approaches to Smurfit for 12 months.
