Carter Holt Harvey Diminishes Amcor Appeal

Array
(
    [0] => Array
        (
        )

    [1] => Array
        (
        )

)

By Rudi Filapek-Vandyck

New Zealand based paper giant Carter Holt Harvey has negotiated an agreement to buy industry juggernaut International Paper Co’s beverage-packaging division as well as its US paper mill for an undisclosed sum.

The irony of the transaction is that International Paper until last year owned 50.5% of Carter Holt Harvey and had long been considered as the company’s logical acquirer. Until the company had been fully acquired and de-listed by New Zealand’s richest man, Graeme Hart, Carter Holt Harvey had a dual listing on both stock markets across the Tasman Sea.

Probably of more importance to Australian investors is the fact that Carter Holt Harvey until now was considered to be a logical acquirer of Amcor (AMC). The announced transaction, believed to be in the hundreds of millions of dollars, throws the speculated takeover scenario for Amcor in disarray, market sources told FN Arena News.

This would explain why Amcor shares are trading lower today, currently down by 1.6% at $7.35 in an overall positive market.

Earlier today, Australia’s benchmark S&P/ASX 200 Index added 21.8 points to a new five-month high of 5,311.8.

Click to view our Glossary of Financial Terms