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Smurfit Kappa Rejects Unsolicited Proposal From International Paper Co.

Smurfit Kappa Group (SKG.L), an Ireland-based provider of paper-based packaging solutions, said its board of directors has unanimously rejected an unsolicited and "highly opportunistic" proposal from International Paper Co. (IP), headquartered in Memphis, USA.

Under the proposal, Smurfit Kappa shareholders would receive a combination of cash and a minority holding in the combined business. However, Smurfit noted that the proposal fails entirely to reflect the Group's "strong growth prospects and attractive industry outlook."

The board of Smurfit Kappa has carefully considered the proposal and believes it is in the best interests of the Group's shareholders and other stakeholders to pursue its future as an independent company. The company advised its shareholders to take no action.

Smurfit Kappa recently announced record EBITDA for 2017 of 1.24 billion euros as well as a full year ROCE of 15 percent, and noted that the underlying positive trading conditions have continued into 2018.

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