Smurfit-Stone Container Corp. has engaged Morgan Stanley & Company Inc. as its financial adviser to assist its board of directors in evaluating potential strategic and financial steps for the company to consider in light of the announcement that an investment firm has offered to buy Jefferson Smurfit Group plc , the largest shareholder of SSCC.
Madison Dearborn Partners, a U.S. investment firm, agreed to pay $3.5 billion for Ireland's Jefferson Smurfit Group. In addition to being a significant paper company in Europe, JSG owns close to 30 percent off Smurfit-Stone Container, a large U.S., paper and paperboard producer.
As part of the deal, Madison Dearborn would spin off Smurfit-Stone.
The takeover also must be approved by regulatory authorities in Ireland, the United States and Britain, where Jefferson Smurfit shares are traded on the London Stock Exchange.
Patrick J. Moore, president and CEO of Smurfit-Stone, commented, "A distribution of the Group stake in SSCC would not alter our operating strategy. We remain committed to building the premier paperboard and packaging business in North America. We have been a leader in consolidation and rationalization and in buying assets rather than building to achieve growth targets. We have developed a business model that emphasizes delivering higher value for customers and profitability through the cycle. We are an independent company with our own balance sheet and remain committed to achieving our financial targets. Our focus remains on directing our resources to serve our customers, provide a competitive workplace for our employees and meet the expectations of shareholders."