Tag Archive | "second quarter"

RockTenn to Purchase Smurfit Stone for $3.5 Billion

RockTenn Co, the packaging and paper company, has concurred to buy larger rival Smurfit-Stone Container Corp for the amount of $3.5 billion in cash, including stock for seven months.

The deal was announced on Sunday. This occurred after Smurfit rose from bankruptcy with less debt and higher potentials in profit.

This will increase RockTenn’s annual revenue three times up to more than $9 billion. The combined company will be considered as the second-largest containerboard producer in North Africa following International Paper Co.

Based on the agreement approved by the boards of both companies, RockTenn will pay $35 in cash, as well as stock per each Smurfit-Stone common share. This represents 27 percent premium to Smurfit-Stone’s $27.52 closing price on Friday.

Along with the deal, RockTenn Chairman and Chief Executive, James Rubright is making a big bet that the demand for containerboard will increase as the economy of United States comes out of the recession.

In the recent months, the demand for paper and packaging has increased as consumers elevated their everyday spending on goods that are sold and shipped through packaging. The improvement occurred after an almost decade-long fall because of the weak demand and overcapacity.

Guided by the terms of the deal, RockTen will offer 50 percent cash and 50 percent stock for Smurfit. That is, $17.50 in cash and 0.30605 RockTenn share for every Smurfit share.

RockTenn shareholders will possess an estimated 56 percent while Smurfit-Stone shareholders will possess 44 percent of the joint company following the deal.

The agreement is anticipated to close in the second quarter upon the regulatory and shareholder approval.

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Miami Heat Survive a Late Scare to Beat New York Knicks

Miami Heat beat the New York Knicks with a final score of 106-98 on Tuesday. This is the 15th win for the Heat in 16 games.

Miami’s shooting and point guard Dwayne Wade scored 40 points that helped the Heat beat the Knicks durring the game.

After the first quarter, the Heat gained a 34-18 advantage with the assistance of LeBron James’ spectacular game.

However, it was one of Miami’s less commended player that made a dominant role in the early part of the game. Lithuanian center Zydrunas Ilgauskas scored 12 points and grabbed nine rebounds in the first quarter.

Miami head coach Erik Spoelstra told Big Z that he would have possibly made a 28 point and 17-rebound game only if he had a coach that would have placed him back in the game. He played very efficiently and more minutes than they had planned.

Wade took the leading role in the second quarter. He finished the first half with 17 points and the Heat had a comfortable 53-40 advantage at halftime.

In the third quarter, the New York Knicks were able to move up to 61-55, but that only encouraged further dominance by Miami’s Wade and Chris Bosh.

The New York Knicks, which are known for their determination to win games, fought back until there were two minutes left for them to score a three-point shot to tie the game. The Knicks were trailing behind from 97-94 score.

Spoelstra said that he warned his team abut the New York’s trademark determination. He told the team that their 22-point lead against the Knicks is only equivalent to seven-point lead against some other teams.

However, Miami’s “big three” James, Wade and Bosh made a turn to ensure that the late scare will not become a shock.

Miami followed behind the Boston Celtics at the top of the Eastern Conference while Knicks slipped lower.

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