DUBLIN, March 6 (Reuters) - Irish packaging group Smurfit Kappa has rejected an unsolicited approach from U.S.-based International Paper Co, saying the proposal "fails entirely" to reflect its strong growth prospects and attractive industry outlook.
Smurfit Kappa, Europe's largest producer of paper-based packaging, said on Tuesday that its shareholders would receive a combination of cash and a minority holding in the combined business under International Paper's proposal.
"The Board of Smurfit Kappa has unanimously rejected this unsolicited and highly opportunistic Proposal. It does not reflect the Group’s true intrinsic business worth or its prospects. We strongly advise shareholders to take no action," Smurfit Kappa chairman Liam O'Mahony said in a statement.
Reporting by Padraic Halpin