Chicago-based private equity house Madison Dearborn Partners has emerged as the mystery bidder for Irish packaging giant Jefferson Smurfit Group, sources said today.
Madison Dearborn, which raised a $4 billion investment fund in 2001, names paper and packaging as areas of its investment focus, and has already invested in US paper and packaging firms including Bay State Paper Holding Company and Packaging Corporation of America.
Talks between Smurfit and the US firm are still at an early stage, they said, adding it was still unclear whether any talks would lead to a full or part offer for the group.
Analysts said a full takeover of Smurfit could fetch around €4 billion - which would make it one of Ireland's largest leveraged buyouts to date.
Smurfit shares were flat today after soaring as much as 29 per cent yesterday after the company said it was in talks with a potential buyer. The stock closed up 17 per cent at €3.13 on the Dublin equity market yesterday.
An offer of €4 billion would equal about €3.70 per share representing a premium of about 18 per cent over yesterday’s closing share price.