Third party walks away from Smurfit

The prospect of a bidding war for packaging giant Jefferson Smurfit faded today after an unnamed suitor bowed out.

Smurfit had agreed a €3.7bn takeover offer by US private equity house Madison Dearborn Partners when it emerged another suitor was also interested.

The group agreed to meet with the unnamed third party, and over the last month has provided it with information about the company and access to management.

But Smurfit confirmed today that the suitor had decided against tabling a bid.

The group said in a statement: ‘‘The party has now informed JSG and its advisers that is does not intend to make a competing offer for JSG.

‘‘The independent directors confirm that no other approaches have been received and they have not been asked to provide any information to any other party interested in making an offer for JSG.’’

It means the path is now clear for Madison’s offer, which will be the biggest sale in Irish corporate history if it goes ahead.

The bid, which has been unanimously recommended by the independent directors, remains open for acceptances until August 6.

Smurfit employs 3,000 people and is the world’s largest maker of containerboard and linerboard for corrugated cardboard boxes.

However, it reported a 26% fall in annual profits in February because of what it called the worst market conditions in the US since the mid-seventies.

Shares in the group, which has a London listing, dipped 2½p at 193p today.