KEY POINTS:
ZURICH - Shares in Switzerland's SIG scaled new highs yesterday on expectations that rivals in a bidding war will again raise their offer prices for the packaging group.
Elopak, backed by private equity house CVC Capital Partners and owned by holding group FERD, on Friday increased its bid for SIG to 400 Swiss francs ($476) a share, having offered 325 francs a share earlier.
The higher bid came after a rival bid from Graeme Hart's Rank Group of 370 francs a share for the world's second-largest food and drink packager last week.
Shares in the group were up 3.6 per cent to 408 francs yesterday, having hit 408.25 and adding to the 40 per cent gained this year, as analysts expect Rank will now also increase its bid.
"Rank is likely to put in a new offer. We do not know how much higher it could be. But there is a strategic interest from Rank," said Johannes Borner, analyst at Sal. Oppenheim.
Rank, which owns Carter Holt Harvey, a market leader in cardboard and packaging in Australia and New Zealand, secured its latest acquisition this month, when International Paper agreed to sell its beverage packaging unit to CHH for US$500 million.
- REUTERS
