The Chicago-based private equity firm made the announcement after the closure of the first acceptance date on 6 August. The offer has now been extended to shareholders until 20 August.

But Jefferson Smurfit has reported a fall in pre-tax profits and operating profit the second quarter of 2002, despite a rise in sales.

Pre-tax profits before exceptional items fell 13% to 54m and oper-ating profits were down 17% to 84.5m. But third-party sales rose 10% to 808m.

Net sales in Europe were up 19% to 575m although operating profits fell 6% to 42m.

The group said the results in Europe reflected a 33% decline in the packaging sector due to lower than average paper prices and rising waste fibre costs.

Smurfit expects further increases in waste fibre prices, and said a weakening of the US dollar would hurt demand in Europe and Latin America.

Story by Andy Scott