US private equity house Texas Pacific Group may make a rival bid for Irish packaging giant Jefferson Smurfit, which has already agreed to a €3.7 billion ($3.5 billion) buyout, industry sources said today.
Jefferson Smurfit Group, the world's largest maker of paper-based packaging, yesterday recommended an offer from another US private equity group, Madison Dearborn Partners, having long voiced frustration with its share price.
Analysts say that Texas Pacific, headed by Mr David Bonderman, chairman of Irish budget airline Ryanair, was considering whether to trump Madison Dearborn.
Smurfit independent director, Mr Martin Rafferty, told reporters that the board had received another approach nearly four weeks ago which "remains preliminary".
Mr Rafferty said there was nothing to prevent a higher offer being made for Smurfit and that directors were obliged under Irish takeover rules to consider any other offer they receive.
Madison Dearborn offered Smurfit shareholders €2.15 per share in cash for the core business. This would leave shareholders with the group's remaining asset, a near 30 per cent stake in US paperboard and packaging firm Smurfit-Stone Container Co.
Shares in Smurfit are currently trading up 0.32 per cent at (€3.17) euros on the Dublin Market.