Hedge Funds Fight $3.5B Smurfit-RockTenn Deal

Law360, New York (February 3, 2011, 6:10 PM EST) -- Three New York hedge funds that control 9 percent of Smurfit-Stone Container Corp.'s post-bankruptcy common stock have promised to vote against RockTenn Co.'s planned $3.5 billion acquisition of the corrugated packaging manufacturer.

Third Point LLC, Royal Capital Management LLC and Monarch Alternative Capital LP penned a fiery letter, dated Wednesday, saying the acquisition by Norcross, Ga.-based paperboard, containerboard and packaging manufacturer RockTenn “substantially undervalues” Chicago-based Smurfit-Stone.

The letter came on the same day as an investor named John M. Marks filed a proposed class action lawsuit...
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