Boston, MA 10/03/2013 (wallstreetpr) – A group of 8 investors led by Carlson Capital who as a block own 6.7 million shares of the common stock of Boise. Inc (NYSE:BZ) filed a caveat with SEC on September 23. Collectively the group owns 6.6% of the total 100.53 million shares outstanding. They have written to SEC indicating their unhappiness at the value of the shares arrived at for the proposed acquisition by “Packaging corporation of America”. The group collectively feel that the actual value of the stock is in the range of $14.00 and $17.00 per share and, hence the offer price of $12.55 per share would not reflect the fair underlying value of Boise.
The group proposes that a hiving off Boise’s “Paper” and “Packaging” business as separate entities would position the company well to bargain for a better valuation by prospective buyers. They also claim that the board has not taken into account the significant improvement in operations and return on investment both the business segments are showcasing over the past few quarters. Hence the group has indicated their unwillingness to tender their collective 6.6% holding in the event of purchase offer remaining $12.55 per share.
This latest development is happening in the back drop of “Packaging Corporation” September 18 announcement to purchase Boise in 100% buyout offer by paying a 23% premium on the stock price as of close of business on September 15. Packaging Corporation had estimated the transaction to range around $2 billion. On successful completion, PCA’s containerboard capacity would have increased to 3.7 million tons from its current capacity of 2.6 million tons.
Shares of Boise which has a current market capitalization of $1.2 billion are trading at $12.65 per share. It reflects a 0.7% dip in comparison to its 52 week high valuation and is up 80% from its 52 week low valuation.
