The new proposal values SKG at close to €9bn. It still "fails to value the group's intrinsic business worth and future prospects," according to the the company's board of directors.
Smurfit Kappa Group (SKG) has rejected another takeover proposal by its US rival International Paper (IP). The board of directors (BOD) of the Dublin-based paper and packaging company announced that compared to the 6 March offer, IP has stepped up its proposal to value each of SKG's shares at €37.54. Nevertheless, it "fundamentally undervalued the group" and remained "significantly below the valuations set by recent industry transactions."
"The revised proposal continues to include a significant proportion of the consideration in the form of International Paper shares which are US-listed, represent uncertain value, and would expose Smurfit Kappa shareholders to the risk of significantly greater leverage and the challenges of integrating two businesses with fundamentally different cultures, " SKG said in a statement on 26 March.
The BOD of Smurfit Kappa also said that the revised proposal did not make strategic sense for the company and strongly advised the shareholders to take no action with respect to IP's takeover proposal.