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Hedge Funds Hike Smurfit Kappa Positions

Monday, May 14, 2018   (0 Comments)
Posted by: Alyce Ryan
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Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives.

It comes as many investors cling on to hopes that US peer International Paper (IP) will make a third bid for Smurfit Kappa, after two previous proposals were shot down by the board of the Dublin-based group.

New York fund Davidson Kempner disclosed this week that it had had upped its exposure to Smurfit Kappa to 2.33 per cent through instruments called contracts for difference (CFDs), which allow investors to make a leveraged investment. York Capital Management also revealed earlier this month that it had a 2.41 per cent CFD stake in the group.

The two funds said in stock-exchange filings in early March that they each had 1.1 per cent positions in Smurfit Kappa, after the paper packaging company announced that it had received and rejected an initial takeover approach from Memphis-based IP.

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