RPC (RPC) shareholders will be taking their place at the ringside, after US packaging company Berry Global Group requested due diligence information from RPC in advance of a potential takeover bid. RPC confirmed that it is mulling a possible cash offer and will comply with Berry’s request.
Berry emphasised that its interest does not amount to confirmation of a bid for RPC. The news follows an offer worth £3.3bn that was submitted by private equity group Apollo Global Management after four months of talks, that met with recommendation by the RPC board, and with derision from some shareholders.
Royal London Asset Management’s Craig Yeaman, who raised the possibility of another suitor entering the fray while criticising the bid last week, said that “Apollo were always going to run this risk having pitched the bid at this level which has clearly given others encouragement”. RLAM holds a stake of around 1.33 per cent in RPC.
The RLAM fund manager added that heads may roll at RPC over the decision to recommend Apollo’s bid. “Berry Global, being a competitor to RPC, would have plenty of synergies to go after and the first casualties could include senior management who were so willing to accept Apollo’s offer.”
Top five shareholders Canyon Capital and Eminence Capital, who backed Apollo's bid, did not respond to a request for comment.
