Paper-packaging group Smurfit Kappa has announced that it received an unsolicited proposal from Memphis-based International Paper Company to acquire the business.
Smurfit Kappa says that its board has carefully considered the takeover bid from its US rival, but has rejected the offer.
Company shares jumped 18% in early trading in Dublin following the announcement.
“The board of Smurfit Kappa has unanimously rejected this unsolicited and highly opportunistic proposal," said Liam O'Mahony, the company's chairman.
"The board believes that it is in the best interests of all stakeholders for the group to pursue its future as an independent company, headquartered in Ireland, operating as the European and pan-American leader in paper-based packaging. We strongly advise shareholders to take no action,” O'Mahony added.
O'Mahony added that the proposal from International Paper "does not reflect the group's true intrinsic business worth or its prospects".
"We delivered a record performance in 2017, and underlying trading momentum has continued into 2018," he said. "The group has a proven management team, which we believe will deliver significantly greater value for shareholders on a stand-alone basis."
Last month, Smurfit Kappa reported revenue of €8.56 billion in its 2017 full-year results, marking an increase of 5%, compared to the previous year.
The company also announced plans to accelerate its investment programme to improve market position and strengthen future growth.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.