Irish company Smurfit Kappa Group has turned down a takeover bid from US-base packaging firm International Paper for the second time.
Smurfit Kappa shareholders were offered €25.25 in cash and 0.3028 shares of International Paper common stock for each ordinary share held.
Earlier this month, International Paper had already offered €22 and 0.3 shares for each Smurfit Kappa share.
The Irish company’s board has, however, unanimously rejected the proposal, which values the firm at $11 billion, on the grounds that it is detrimental to its ambition of pursuing its future as an independent company with shares in European and American markets.
The board said the renewed offer undervalues the group and thus advised the shareholders not to act upon the deal.
Smurfit Kappa chairman Liam O’Mahony said: “On 6 March, the board of Smurfit Kappa unanimously rejected International Paper’s unsolicited and highly opportunistic proposal.
“The revised proposal does not offer Smurfit Kappa shareholders much more than compensation for the fall in International Paper’s share price since that date and again entirely fails to value the group’s true intrinsic business worth and future prospects.”
According to the board, the deal does not fall in line with the company’s strategic needs.
Smurfit Kappa has plans to invest €1.6 billion with the aim to boost growth prospects.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for last year reached €1.24 billion.