Jefferson Smurfit Group is set to make a takeover bid for the British packaging group Norcor Holdings, after it bought another 1.23 million Norcor shares, to take its stake in the British company to 29.95 per cent.

This is the largest stake that Smurfit can take in Norcor without making a compulsory takeover bid. Industry sources now believe that it is only a matter of time before Smurfit launches a bid that will value Norcor at more than £20 million sterling.

Smurfit has been progressively increasing its stake over the past year, but the stake-building has taken on a new impetus in recent weeks, during which the Smurfit stake has risen from 10 per cent to just under 30 per cent. Smurfit has refused to make any comments on its intentions, but it will be a major surprise if the Irish company does not make a bid. Norcor is Britain's biggest manufacturer of corrugated sheet board. Norcor shares traded up 3 1/2p to 77p sterling, but the price has yet to react significantly to the stake-building and likely bid by Smurfit. Norcor is still trading well below its 99p high in the past year but, at 77p, is still trading on a historic price/earnings multiple.