Swoop on Europe’s biggest box maker

SHARES in the paper and packaging industry soared after American predators swooped on Europe’s largest cardboard box maker.

Smurfit Kappa saw its value jump by 20pc or £1.2bn to £7.2bn after it rejected an ‘unsolicited and highly opportunistic’ approach from US rival International Paper.

The 500p or nearly 20pc rise in the share price to 3042p propelled the Dublin-based company to the top of the FTSE 100 leaderboard.

Smurfit Kappa was followed higher by rival DS Smith, up 5.6pc, and Mondi, which gained 2.3pc.

Joshua Mahony, an analyst at City trading firm IG, said: ‘The normally unremarkable packaging sector has been the talk of the town. There is a clear hope that the offer for Smurfit Kappa has signalled the beginning rather than the end of M&A activity across the sector.’

Smurfit Kappa, which made record profits of £1.1bn last year, did not reveal the value of the approach from its Memphis-based rival but insisted it was not enough. The company dates back to 1934 and became Smurfit Kappa with the merger of Smurfit and Dutch rival Kappa in 2005.