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The chances of US group International Paper (IP) wrapping up a takeover deal with Smurfit Kappa are fading, as both sides maintain a standoff days before a bid deadline.
Sources familiar with the matter said that neither side has engaged with the other since the Irish Takeover Panel moved in the middle of last month to set a deadline of 7am on June 6th for IP to announce a binding offer for Smurfit Kappa or face a 12-month ban from being able to mount another approach.
The company said it would only proceed with such an offer once it was recommended by the board of its Irish rival.
Chris Manuel, an analyst with US bank Wells Fargo, said on Friday that he now puts the probability of a deal at less than 20 per cent, based on his conversations with Smurfit Kappa investors, public comments from both sides and IP’s steadfast position that it will remain disciplined.
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