DS Smith receives preliminary expression of interest from Mondi

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Shares in DS Smith rose by 12% following news that the company has received a highly preliminary expression of interest from larger peer Mondi regarding a potential offer. However, no formal proposal has been received at this stage.

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Positive Stock Performance

DS Smith shares were trading at 315.20 pence at 1039 GMT, making it one of the top gainers on the FTSE 100 index. Despite this recent increase, the company’s shares have experienced a decline of 9.9% over the past year. On the other hand, Mondi shares have dropped by 2.1%, or 28.50 pence, trading at 1,352.50 pence. Over the past 12 months, Mondi’s shares have fallen by 11%.

Uncertainty Regarding Potential Deal

DS Smith, a London-listed packaging company, disclosed on Thursday that it is uncertain whether a deal will be reached and what the proposed terms would be.

Potential Value of the Deal

If a deal were to materialize, it would result in a combined company with a market value of £10.365 billion ($13.09 billion), considering the current market values of both DS Smith and Mondi.

Timeline for Decision Making

As per the rules of the U.K. Takeover Panel, Mondi has until March 7 to either make a formal offer or withdraw its expression of interest.

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