Half of Jefferson Smurfit Group's 1.08 billion shares are now held by North American investors and the packaging group has decided to report quarterly financial results as opposed to the current twice-yearly reporting.

The decision by Smurfit to operate US financial reporting standards will inevitably fuel speculation that this is part of the preparation for a merger between Smurfit and its 29.5 per cent-owned US associate, Smurfit Stone Container Corporation.

There has been speculation on such a merger for many months although recent indications from Smurfit Stone suggested it was not a priority. "The US is in many respects a natural home for our equity and has now become our primary capital market. Quarterly reporting is a logical move to meet the needs of our international diverse investor group," said Smurfit chairman and chief executive Dr Michael Smurfit.

He said 50 per cent of the group's equity was held in North America against 14 per cent in 1995 and added: "The achievement of a majority US holding represents a significant milestone in the group's history. Jefferson Smurfit Group is the first Irish industrial firm to achieve and sustain this level of US investment."

Smurfit shares trade in Dublin, London and the Nasdaq market in New York. About 15 per cent of the group's shares are held in the form of American depositary shares compared to 8 per cent in 1999. Average daily volumes on Nasdaq were 50,000 shares in the first half of this year - equivalent to 500,000 ordinary shares. Average turnover in Dublin in the same period was two million shares.