US group eying up €8bn bid for Smurfit

Dublin-based paper and packaging group Smurfit Kappa has, reportedly, emerged as a possible €8bn takeover target for US industry giant International Paper.

Speculation regarding a bid increased over the weekend, with Sky News’s business team yesterday reporting that Tennesse-based International Paper has taken on Deutsche Bank as an adviser on a potential bid. Smurfit’s shares had risen sharply, earlier in the week, on rumours that it could be approached by a US player or Australian rival Amcor. It is understood, however, that the US group has yet to make a formal approach to Smurfit’s board.

Earlier this year, Smurfit posted a strong set of figures for 2014, including a near 30% rise in pre-tax profits to €378m and a 2% jump in group revenues. Management said another strong year, in 2015, was anticipated and it was planning to return surplus cash to shareholders if it fails to land any target acquisitions of its own.