The board of directors of SIG Holding (Neuhausen / Switzerland; www.sig.biz) has recommended that the company´s shareholders accept the CHF 435 (EUR 269) per share takeover offer of New Zealand´s Rank Group (Auckland) – see Plasteurope.com Web of 20.03.2007. Rank´s final bid, valuing SIG at CHF 2.8 bn, reflects a 43% premium on the packaging manufacturer´s last closing price of CHF 305.25. It is also 52% above the 30-day average opening price prior to the initial offer made by a consortium of Norway´s Ferd group with CVC Capital Partners, owners of Norwegian rival Elopak (Spikkestad; www.elopak.com), in September 2006. The consortium declined to increase its offer beyond the CHF 400 proposed in January 2007.

After benchmarking the Rank bid against the company´s "inherent value," SIG chairman Lambert Leisewitz said the board has concluded that it is adequate. He added that the directors support the New Zealand group´s intent to merge the SIG with the "geographically complementary" Beverage Packaging (BevPack) division of Rank´s International Paper subsidiary. Melding the Swiss producer´s aseptic carton business with BevPack´s dairy and juice product range will allow the combined group to "offer its customers a comprehensive range of packaging solutions and provide important strategic advantages in terms of scale, market presence and global footprint," said Leisewitz. The Swiss company´s organisational structure will not be "significantly altered" and its managing board and its Neuhausen headquarters will be retained.

According to New Zealand press reports, Rank, owned by billionaire Graeme Hart, the country´s "richest man," has now accumulated 33% of SIG´s shares. If it declares the offer successful – this is expected for "no later" than 4 April 2007 – shareholders will be asked approve the transaction at an extraordinary general meeting on 7 May 2007. The deal – reportedly backed by Credit Suisse – is likely to close in early May.