Management of plastics packaging producer RPC Group (Higham Ferrers / UK; www.rpc.eu) has commissioned a strategic review of operations and, assisted by merchant bankers NM Rothschild & Sons, plans to consider “all options to maximise shareholder value.” The move is in reaction to a deteriorating share price that the board of directors feels “does not fairly reflect its strong market positions and growth prospects.” On the news – which has raised speculation about a possible takeover or break-up – the share rose by GBP 0.17 to GBP 2.02, valuing the business at GBP 200m (EUR 250.3m). In the 12 preceding months it had fallen by 35%.

In a report to the London Stock Exchange, RPC said that earnings in fiscal 2008 (31 March), scheduled to be announced on 18 June 2008, will be “not less than market consensus.” It said adjusted pretax income for the full year may have fallen by as much as 6.5% against 2006 to “no less than” GBP 27.5m. Like other players, the packaging producer has been hit by spiralling raw materials and transport costs, as well as faltering UK demand and the restructuring of the country’s production sector.

Among potential buyers, strong rumours point to Atorka (Reykjavik / Iceland; www.atorka.net), which has created a new strategic packaging player combining its subsidiary Promens and the former Polimoon – see Plasteurope.com of 03.01.2007. The Icelandic group is reported to have already built up a stake in RPC. As other interested parties, UK packaging producer Rexam (London; www.rexam.com), Ratos (Stockholm / Sweden; www.ratos.se) and private equity investor Apollo Management (New York / USA) have been mentioned.