Packaging group Jefferson Smurfit confirmed this morning that it had received a potential bid approach from a third party. Shares in the company closed up 46 cent to €3.13 in Dublin on the news.
'Smurfit is aware of recent market speculation in connection with a possible offer for the company,' it said in a statement this morning.
It confirmed that it has received an approach from a third party, and said that discussions are at a preliminary state and may or may not lead to an offer being made for part of all of the company. The company said it will make a further statement 'when appropriate'.
No names are being mentioned at the moment but market commentators believe an outright bid for 100% of the company would cost in the region of €4 billion. This is based on a 30% premium to their market capitalisation.
One name being mentioned is the US based International Paper Company, the largest paper company in the world, and about eight times the size of Smurfit.
Major sector players:
US
International Paper €24b
Weyerhaeuser €16b
Georgia Pacific €8b
Smurfit Stone €5b
Europe
Stora Enso €13b
UPM-Kymmene €10b
SCA €8b
Smurfit €3b
