Business World

Tuesday 6 December 2016

Smurfit Kappa's busy week: an acquisition and takeover rumours

Published 19/04/2015 | 02:30

ELECTION COUNTDOWN: Ed Milliband was credited with winning last week's televised UK leaders' debate, as PM David Cameron was 'empty-chaired' for refusing to participate. Most 'polls of polls' have Milliband slightly ahead, with the vote, which could impact hugely on Ireland's business aspirations, set to go ahead on May 7. Photo: Stefan Rousseau/PA
ELECTION COUNTDOWN: Ed Milliband was credited with winning last week's televised UK leaders' debate, as PM David Cameron was 'empty-chaired' for refusing to participate. Most 'polls of polls' have Milliband slightly ahead, with the vote, which could impact hugely on Ireland's business aspirations, set to go ahead on May 7. Photo: Stefan Rousseau/PA

Weekend media reports suggested that Tennessee-based International Paper was considering an €8bn move for Smurfit Kappa, which currently has a market capitalisation of around €6.5bn.

  • Go To

Spokespeople for both companies downplayed the reports, however.

Later in the week Smurfit Kappa announced it had agreed to shell out €60m for UK-based corrugated packaging company Inspirepac.

The deal is expected to close between April and June and the Irish company reckons it will add to its bottom line immediately.

The company also held a capital markets day in the Netherlands for investors this week.

Permo unveils plans to boldly go where it was a few years ago

Permanent TSB said it intended to go back to the stock market as part of its return to private ownership.

The 99pc State-owned bank is looking to raise €525m of capital in total, and its management has met around 100 investors as part of the process. The State is still likely to be the majority shareholder, however.

Separately, the bank completed a stock consolidation, converting every 100 existing shares into one new share.

Google gets a telling-off from EU

EU competition commissioner Margrethe Vestager thinks Google might be rigging its search engine and Android smartphone system to disadvantage rivals.

"I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules," Vestager said.

"I have also launched a formal antitrust investigation of Google's conduct concerning mobile operating systems, apps and services".

Moody's issues warning over QE

The ECB might run out of eligible bonds to buy from eurozone countries because yields have turned negative, Moody's warned.

To much fanfare, the ECB announced in January it would buy €60bn of Government bonds a month to try and kickstart the European economy.

Bonds aren't eligible if their yield drops below -0.2pc, but Moody's said that has already happened to some.

Mario Draghi said the fears were exaggerated and that the programme was flexible enough to be adjusted if circumstances change.

Sunday Indo Business

Read More

Promoted articles

Editors Choice

Also in Business