KEY POINTS:
SIG Holding, a Swiss drink-carton maker, has rejected Graeme Hart's 2.41 billion Swiss-franc ($2.7 billion) takeover offer and said a rival bid was at a "realistic level" for some investors.
The 2.6 billion-franc rival bid from Ferd Holding of Norway and London-based CVC Capital Partners might attract investors who were looking to "cash out" of investments, SIG said over the weekend. It stopped short of endorsing the approach.
An initial bid from Ferd and CVC prompted SIG to open its books to potential buyers in October, drawing a better offer from Hart's Rank Group.
That led Ferd to return with an improved 400 franc a share price.
Ferd - the parent of Elopak packaging group - wants to add SIG to become the world's second-largest fresh-liquid carton supplier after Tetra Pak.
For Hart, buying SIG would expand a paper-products business that includes Carter Holt Harvey which he bought last year.
"The game isn't over," Geneva-based Helvea analyst Alessandro Migliorini said.
"There is no need yet for investors to offer their shares to Ferd. Rank may increase its bid."
No other potential buyers had come forward, SIG said.
The shares slipped 0.2 per cent, or 75 centimes, to 412.25 francs in Zurich. They have risen 1.3 per cent this year, giving SIG a market value of 2.68 billion francs.
On Friday SIG reported a 53 per cent jump in annual profit to €66 million ($124 million) . Sales rose 12 per cent to €1.35 billion. Debt decreased by half to €30 million.
The Swiss manufacturer forecast sales to gain 10 per cent in 2008 and 2009.
The European Commission said in December it would study whether a takeover by Ferd would hurt competition.
- BLOOMBERG
