Smurfit EGM to vote on Dearbon bid today

Shareholders in the Smurfit Group are to hold an extraordinary general meeting (EGM) this afternoon to discuss the offer made…

Shareholders in the Smurfit Group are to hold an extraordinary general meeting (EGM) this afternoon to discuss the offer made by US firm Madison Dearbon to buy the group.

The meeting, which will begin at 4 p.m. in Dublin's Burlington Hotel, will put two resolutions for the shareholders to vote on.

Both resolutions must be passed for the €3.7 billion deal to proceed.

The first resolution concerns the spinning off of Smurfit Stone Container Corp, Smurfit's 29.3 per cent-owned US business that Madison does not want. The second motion will allow Smurfit management to take part in the takeover of the company.

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The second motion requires a simply majority vote, but the first requires a 75 per cent majority.

Over 80 per cent of Smurfit shareholders must have voted in favour of the offer by August 6th for it to become unconditional

Smurfit executives who will be involved with the new company are banned from voting at today's meeting and the failure of shareholders to approve the spin-off would see Madison withdraw its bid.

Shares in Smurfit are trading at up six cents to €2.92.