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A transatlantic bidding war has broken out for London-listed packaging group DS Smith.
The FTSE 100 company said last night that it is in talks with US rival International Paper over a potential takeover bid worth 415p per share or £5.7 billion.
The discussions come just weeks after DS Smith backed a lower offer of 373p per share or £5.1 billion from fellow Footsie group Mondi.
That would have created an £11 billion packaging giant listed in London.
But the proposed partnership has been hijacked by International Paper – and could result in DS Smith becoming the latest British company to be swallowed up by foreign predators.
Bidding war: London-listed packaging group DS Smith said it is in talks with US rival International Paper over a possible takeover bid worth 415p per share or £5.7 billion
Shares in DS Smith – which soared last month after Mondi’s crackdown – are still set to soar higher today.
The share closed down 2.7 per cent, or 9.6p, at 359.8p yesterday, before the latest offer from the US was announced.
DS Smith employs more than 30,000 employees and has been listed on the stock exchange since 1986. The company makes products such as containers for cans and bottles and food packaging.
The FTSE 100 company said its board “recognizes the strategic merits and potential for value creation from a combination with International Paper.”
Tennessee-based International Paper, which makes wooden crates for fruit and vegetables, among other things, has until April 23 to say whether it wants to make a formal offer or walk away.
Mondi will also come under pressure to improve the terms of its bid or abandon its plans to join forces with DS Smith.
DS Smith is just the latest London-listed company to be targeted by foreign buyers in a wave of takeover interest that has raised concerns that British companies are undervalued and vulnerable to bargain hunters.
A range of British companies have been approached in recent weeks, including Currys, Direct Line, Wincanton, Spirent and All3Media.