* Mondi says to buy remaining 34 pct of Mondi Swiecie
* Mondi Swiecie up 5.8 pct, Mondi down
By Agnieszka Flak and Maciej Onoszko
JOHANNESBURG/WARSAW, Feb 16 (Reuters) – Shares in
Polish paper maker Mondi Swiecie climbed above an
offer price from its South African parent on Thursday, as
investors bet Mondi Ltd would have to sweeten its $374
million buy-out bid.
The South African paper maker owns two-thirds of Mondi
Swiecie, whose products are used to make items including paper
bags, and offered 69 zlotys ($21.5) per share for the remaining
34 percent of the Polish company.
The offer was in line with Mondi Swiecie’s closing price in
Warsaw on Wednesday, but investors sent shares of the firm up
another 5.8 percent to 73 zlotys on Thursday.
“Mondi showed determination to buy and delist Swiecie, but
the market says not at this price. It expects the price to be
raised,” said Mariusz Musial, a broker at Warsaw’s Trigon DM.
Pension fund Aviva PTE, which holds 7.3 percent of Swiecie,
said it was analysing the bid, while ING PTE, which has 10
percent, declined to comment.
Mondi, which is also listed in London, said it had made the
1.2 billion zloty ($374 million) all-cash offer for the
remaining 17 million shares to gain full control of the
container board maker, in line with its strategy to streamline
its structure.
Continued…
