Packaging giant DS Smith could be the subject of a takeover bid from fellow London-listed rival Mondi.
Whispers of a deal, which would create one of the world’s largest makers of packaging supplies, have emerged over recent days.
DS Smith shares jumped 11 per cent on the news. The firm’s market capitalisation sits north of £4bn so a takeover bid from Mondi – complete with a premium – would involve a significant sum.
Should it come to pass it would be another major tie-up between London-listed operations, with housebuilders Barratt and Redrow looking to turn two listed firms into one.
The company updated markets this morning saying it “notes the recent media speculation and confirms that it has received a highly preliminary expression of interest” from a “combination” firms.
DS Smith, which has been listed on the London Stock Exchange since 1950s, said it “understands” Mondi is thinking of making an offer but “no proposal has been received at this stage.”
“There can be no certainty as to whether any proposal will be made or the terms of any such proposal. A further announcement will be made if and when appropriate.”
Following the announcement, FTSE 100 listed Mondi saw its share price drop by more than two per cent, while DS Smith’s rocketed by almost 12 per cent.
DS Smith is the provider of cardboard packaging for tech and delivery behemoth Amazon.