A week after disclosing that it had received a potential takeover approach, Jefferson Smurfit has finally confirmed that Chicago private equity house, Madison Dearborn Partners, is the interested party and that Smurfit management will be an integral part of any bid that emerges from the discussions.

The confirmation of Madison Dearborn Partners had little appreciable effect on Smurfit shares, which continued to trade within a narrow range yesterday, although volumes continue to be substantial. At the close, Smurfit shares were up two cents on €3.22.

In its statement, Smurfit said the Madison Dearborn Partners approach was conditional on a number of factors, including the continued participation of the Smurfit management team. The statement did not specify which members of management were involved with Madison Dearborn Partners, but it is understood that chairman Dr Michael Smurfit, others members of his family and a number of other senior executives, including chief executive Mr Gary McGann, will be integral parts of any leveraged buyout.

Smurfit has also confirmed that the group's senior independent director, Mr Martin Rafferty, will head a committee of independent directors that will consider any approaches and offers. The other members of the committee are Smurfit's former chief operating officer Mr Howard Kilroy and former Eircom chairman Mr Ray MacSharry.

The advisers on what may become Ireland's biggest corporate deal since the sale of Eircom and Eircell are investment bankers UBS Warburg and IBI Corporate Finance and lawyers William Fry.