FTSE 350 Review 2019 

FTSE 350: Papering over the cracks

FTSE 350: Papering over the cracks

2018 proved something of an awkward speed dating round for the packaging and paper sector. Efforts to pick up Smurfit Kappa (SKG) and RPC (RPC) dragged on. In March, Smurfit decided that its offer from US paper company International Paper undervalued the business, and relations went cold in June. RPC, on the other hand, was flush with suitors. In keeping with sensible dating etiquette, RPC was patient and entertained multiple offers, extending deadlines for private equity groups Bain Capital and Apollo Global Management to make their propositions – Bain has since dropped out of the running. But RPC evidently saw something in Apollo, god of music and poetry. In December, it recognised that Apollo’s due diligence was "now substantially complete" and extended its deadline, again, to 18 January. At the time of writing, Apollo is yet to seal the deal.

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