Smurfit bid value falls 5% on weak dollar

Madison Dearborn's takeover bid for the Jefferson Smurfit group has dropped five per cent due to the weakening dollar.

Madison Dearborn's takeover bid for the Jefferson Smurfit group has dropped five per cent due to the weakening dollar.

The bid has been further eroded by a fall in Smurfit Stone Container Corporation's (SSCC) share price.

Last Monday, when the deal was announced, the bid was worth €3.26 per Smurfit share, valuing the company at €3.7 billion. Calculated at today’s prices the bid is worth somewhere in the region of €3.10 euro per share.

Smurfit shareholders are hopeful Madison Dearborn's bid may be outstripped by the Texas Pacific Group, or packaging group Mondi who may yet make a higher offer for the firm.