Scrapped! £8bn bid for packaging firm

INTERNATIONAL Paper has scrapped plans for a £7.8bn takeover offer for packaging giant Smurfit Kappa.

It confirmed it was walking away from a potential deal months after putting forward a sweetened bid to UK rival Smurfit.

‘The company will not make an offer for Smurfit Kappa Group, given the lack of engagement by Smurfit Kappa’s board of directors and management,’ International Paper said.

It means scrapping a proposal first tabled in March of £22.04 in cash and 0.3028 of new shares in International Paper per Smurfit Kappa share. That had been sweetened from its initial approach made that month.

Smurfit had rebuffed the proposed bid, saying it failed to reflect its true value.

The news sent Smurfit Kappa shares soaring by as much as 6pc, although they ended the day up only 0.6pc, or 16p, at 2936p.