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Plastics maker Berry says not to raise offer for RPC

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(Reuters) – Plastics maker Berry Global Group Inc ruled out further sweetening of its 3.34 billion pound bid for British packaging company RPC Group, calling the offer final.

RPC Group agreed to the higher takeover offer of 793 pence per share in cash in early March, ditching a lower bid from private equity firm Apollo Global Management LLC.

Berry’s comments come after analysts said the market was hoping for a higher offer.

Berry said on Friday it reserves the right to increase the offer if another party comes with an offer or a possible offer for RPC.

A source with knowledge of the matter had told Reuters in January that Apollo would not sweeten its 782 pence per share offer.

Berry said it had made good progress on the deal, adding that all regulatory filings had been submitted to the relevant authorities. It expects the deal to close early in the third quarter of 2019.

U.S. activist hedge fund Elliott Capital raised its stake in RPC to 7.9 percent, a day after it disclosed a 5.6 percent stake. Elliott decline to comment on the stake buy.

Berry’s bid for RPC is the latest M&A deal in the packaging sector, which private equity firms have been focusing on for its stable cashflow and demand from online shopping.

(Reporting by Arathy S Nair in Bengaluru; Editing by Gopakumar Warrier and Subhranshu Sahu)

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