Smurfit tightens grip on SSCC

Jefferson Smurfit's control over the management of its Smurfit Stone Container Corporation associate in the United States has been reinforced with the decision by SSCC president and chief executive Mr Roger Stone to retire more than a year earlier than had been indicated at the time of the merger last year.

Another departure from the SSCC board is Mr Matthew Kaplan, Mr Stone's son-in-law, who is vice-president and general manager of the group's key corrugated container division. Analysts on Wall Street said that the boardroom changes at SSCC would suggest that Smurfit - which controls 33 per cent of SSCC shares - has moved to assert its control over the packaging group earlier than had been expected.

Mr Stone is being succeeded by Mr Ray Curran, the former Smurfit finance director who moved to SSCC after the merger, as deputy chief executive. SSCC is also to recruit a new chief operating officer who will report to Mr Curran, while a successor will also have to be appointed to succeed Mr Kaplan at the corrugated container division. Analysts said it was virtually certain that these two key appointments would come from the Smurfit side of the merged company.

While the SSCC merger involved a one-for-one stock swap, which in theory meant that Smurfit and Stone were equal partners in the merged company, industry observers always felt that ultimately Smurfit - as the stronger of the two merger partners - would assert itself. That has now happened with the imminent departure of Mr Stone and his son-in-law.

Announcing his plans to retire at the end of next month, Mr Stone said: "Since completing the merger in November, our progress has been better than expected. Having played my part in bringing the companies together and having initiated what promises to be a very successful integration process, I feel I can step down at this time."