US paper giant 'eyes bid for €8.1bn Dublin-listed Smurfit Kappa'
US-based International Paper is considering an €8.1bn takeover of Dublin-listed Smurfit Kappa, according to weekend media reports.
Tennessee-based International Paper is “believed to be exploring a bid” for Smurfit Kappa at €36 a share, according to at least one report. International Paper is reported to have hired Deutsche Bank to help with the bid.
A bid for Smurfit Kappa would be the latest in a series of takeovers of European companies by US rivals as the dollar’s recent gains make European companies look cheap.
FedEx said last week that it plans to buy the Dutch parcel-delivery firm TNT Express for €4.4bn. Drinks packaging giant Bell recently agreed a takeover of the UK’s Rexam.
Read more: The €7.2m man: Gary McGann is top-paid CEO
Smurfit Kappa is one of the biggest companies on the Dublin stock exchange while xchief executive Gary McGann is the best paid. The shares have risen 67pc in the last 12 months, making it the best performing blue-chip stock in Dublin amid persistent rumours that the company might be sold.
Amcor, an Australian paper company, has also been mooted as a buyer.