NEW YORK (TheStreet) -- Shares of Hefty trash bag maker Pactiv (PTV) were popping on news that Koch Industries is in serious discussions to buy Pactiv, reaffirming reports of acquisition talks that surfaced in May.
According a report from
The New York Post
, the deadline for final bids will likely fall in early to mid-August.
Pactiv stock has reached a new high from October 2007, with share prices up 5.5% to $31.27.
, the cost to protect Pactiv bonds against losses tumbled after the report, with credit-default swaps on Pactiv debt falling 30 basis points to 250 basis points.
Koch Industries, which has a portfolio of diverse businesses, owns Georgia-Pacific, one of the world's leading manufacturers and marketers of tissue, packaging, paper, pulp and building products. Koch Industries completed its $21 billion acquisition of Georgia-Pacific in 2005, the largest acquisition of a publicly-traded company by a private firm in U.S. history.
reports that Pactiv had numerous buyout suitors surfaced.
Interested parties were said to be private equity firm
Apollo Global Management
and New Zealand's
also a private equity firm. According to analysts cited by
The Wall Street Journal
, which broke the news, a Pactiv deal could be worth more than $4 billion.
The reported bidding war comes amid rising M&A activity on Wall Street as borrowing costs for businesses have grown more attractive.
On Jul 19, Pactiv, which is also a leader in the foodservice packaging industry, said it completed the first three phases of a $14.5 million project to produce high-quality molded-fiber hinged-lid carryout containers and other products at its Moorhead, Minn., facility. Initial production commenced in 2009, and the project is expected to be fully operational by October.
Pactiv Jumps on Hopes of Bidding War
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-- Reported by Andrea Tse in New York
>> Pactiv Jumps on Hopes of Bidding War
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