Jefferson Smurfit shares soared today on news the world's top paper-based packaging company had received a bid approach from a third party.
Confirming the approach, Smurfit said: "Discussions are at a preliminary stage and may or may not lead to an offer being made for part or all of the company".
Shares in Smurfit leapt 24 per cent to €3.3, valuing the group at €3.6 billion. Analysts said €4 billion ($3.61 billion) could be a ballpark figure for such an offer.
Speculation on the potential bidder focused on US-based International Paper, or a merger of Smurfit and its US affiliate, Smurfit-Stone Container Corp. (SSCC). Bankers said other bidder names circling include timber giant Weyerhaeuser Co and Mondi International, a unit of minerals giant Anglo-American.
Smurfit, whose former executive Dr Michael Smurfit recently announced he was stepping down, is one of the largest companies in Ireland still remains largely under Irish control.
Mr Liam Igoe, analyst at Goodbody's stockbrokers in Dublin, said there had been considerable market speculation recently that Smurfit could wind up in a combination with SSCC, in which it holds a 29 per cent stake.
"That would be the most obvious one, but they do say a third party so I'm not sure if that is meant to exclude them or not," Mr Igoe said.
Smurfit would be a prime target for any company seeking to expand in the competitive container business. The holding company, through its subsidiaries and affiliates, is the world's biggest maker of containerboard and corrugated containers and is a leading wastepaper recycler.
It operates 600 facilities in Europe and in North and South America.
The company also recently secured an 81 per cent stake in its Swedish peer Munksjo in a bid that valued the manufacturer of specialty decor paper and packaging at $24.8 million.