Packaging giant DS Smith has omitted mention of a potential takeover bid in a trading statement, instead noting that box volumes remained flat over the last three months.
In a trading statement, the group said its focus remained on improving operating efficiency, resilient pricing and tight cost controls, as North America and Eastern Europe saw good growth, offsetting weaker performance in Northern Europe.
Last month, it was rumoured that the group could be the subject of a takeover bid from fellow London-listed rival Mondi, sending shares shooting up 11 per cent.
When rumours emerged, DS Smith said it had noted “the recent media speculation and confirms that it has received a highly preliminary expression of interest” from a “combination” firms.
While not mentioning the takeover bid today, the group said that overall trading and its outlook for the rest of the year remained in line with management expectations.
It added that “anticipated containerboard price increases [are] expected to be reflected in ongoing packaging prices”.
DS Smith is the provider of cardboard packaging for tech and delivery behemoth Amazon.
Miles Roberts, group chief executive of DS Smith, said: “I am pleased with a continuing resilient performance, despite tough economic conditions.
“Our strong customer relationships, quality and service has led to a number of recent FMCG customer contract wins, underpinning our confidence in the outlook for volume growth going forward.
“While markets remain challenging, we continue to focus on providing value-added solutions to our customers and on driving operational efficiency and cost control across the group and view the future with confidence.”
The group’s shares are up 0.5 per cent this morning, and are up 17.9 per cent this month following the takeover rumours.