International Paper Company (NYSE: IP) have just confirmed that the company will not make an offer for Smurfit Kappa Group plc ('Smurfit Kappa'), given the lack of engagement by Smurfit Kappa's Board of Directors and Management.
In February 2018, International Paper provided representatives of Smurfit Kappa's Board of Directors with a proposal to acquire the company. Following discussions with shareholders of both companies, IP put forward a revised proposal on March 26, 2018. IP believes the revised proposal was highly attractive and formed a sound basis for engagement, which the company viewed as essential to determining the full value potential of the combination.
"While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders," said Mark Sutton, Chairman and CEO of International Paper. "Moving forward, we remain focused on executing our strategy and are excited about our outlook. We have many levers to create shareholder value and will be responsible stewards of our shareholders' capital," added Sutton.
As a result of this announcement, International Paper is bound by the restrictions set out in Rule 2.8 of the Irish Takeover Rules. International Paper reserves the right within the next 12 months to set aside this announcement where so permitted under Rule 2.8 (including Rule 2.8(c)(ii)).