Second bidder enters race for Jefferson Smurfit

The independent directors of Jefferson Smurfit have confirmed this afternoon they are in discussions with a second bidder for…

The independent directors of Jefferson Smurfit have confirmed this afternoon they are in discussions with a second bidder for the company. The bidder is believed to be investment company, Texas Pacific.

In a statement released to the stock exchange this afternoon Mr Martin Rafferty, Jefferson Smurfit’s senior non-executive independent director said "The Independent Committee is currently talking with a potential offeror and with management to agree, as soon as possible, a realistic schedule of meetings between the two parties."

Smurfit has already received an approach from US based private equity firm Madison Dearborn Partners which had been approved by the independent directors.

The bid from Madison Dearborn values the company at €3.7 billion.

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Texas Pacific was reported to be doing due diligence work on Smurfit but its inability to meet company managers meant it was unlikely the company would be able to gather all the information necessary to table a formal bid.

Smurfit shares rose 4 cents to €3.15 on the Dublin market this afternoon.