The board of Irish packaging company Smurfit Kappa Group Plc reaffirmed its rejection of the unsolicited takeover bid launched by Tennessee-based rival International Paper Co., which valued the company at €8.6 billion.
Under the terms of the deal, Smurfit Kappa shareholders would receive €22 in cash and 0.3028 new International Paper shares for each Smurfit share.
In a statement, Smurfit Kappa said that the offer "fails entirely to reflect the Group's superior prospects as an independent business and represents a valuation multiple significantly below recent comparable transactions." In a previous statement, the company said the proposal was "fundamentally opportunistic and conditional."
International Paper in a filing disputed Smurfit's characterization of its offer, noting that it took into account the record EBITDA reported by the target on Feb. 7 and the all-time high share price of €29.76 on Feb. 20. It also said that it will continue to engage with Smurfit's board and shareholders.
