March 7, 2018 / 2:58 PM / 10 months ago

Smurfit Kappa shares up on report it open to takeover talks at 40 euros/share

FILE PHOTO: Water vapour billows from smokestacks at the Smurfit Kappa Cellulose du Pin plant in Facture, southwestern France, January 29, 2016. REUTERS/Regis Duvignau/File Photo

DUBLIN (Reuters) - Shares in Smurfit Kappa (SKG.I) jumped on Wednesday, with traders citing a Bloomberg report that the Irish packaging firm was prepared to open takeover talks at 40 euros per share.

Smurfit reaffirmed its rejection of a takeover offer from International Paper Co (IP.N) (IP) on Wednesday after its U.S. rival revealed that it had offered 22 euros in cash and 0.3028 new International Paper share for each Smurfit share in a bid worth 8 billion euros.

Smurfit Kappa shares, which surged more than 18 percent on Tuesday after it flagged the approach, were 5.8 percent higher at 35.80 euros by 1440 GMT, having hit an all-time high of 36.40 euros on the Bloomberg report.

A spokesman for Smurfit Kappa declined to comment and repeated that the offer put forward by IP fails entirely to reflect the group’s prospects as an independent business and represents a valuation multiple significantly below recent comparable transactions.

Reporting by Padraic Halpin and Helen Reid in London; Editing by Alexander Smith

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