Smurfit-Stone to be acquired in $3.5-billion deal

Packaging and paper company RockTenn Co. has agreed to buy bigger rival Smurfit-Stone Container Corp. for $3.5 billion in cash and stock seven months after Smurfit emerged from bankruptcy with less debt and higher profit potential.The deal, announced on Sunday, will triple RockTenn's annual revenue to more than $9 billion and make the combined company the second-largest containerboard producer in North America after International Paper Co.
Under the merger approved by the boards of the two companies, RockTenn will pay $35 in cash and stock per each Smurfit-Stone common share, representing a 27 percent premium to Smurfit-Stone's closing price of $27.52 on Friday.
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