Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, December 15, 2017

Article Excerpt

BEMIS COMPANY INC., $47.08, symbol BMS on New York, is a Wisconsin-based manufacturer of food packaging for companies such as PepsiCo and Colgate-Palmolive. On December 4, 2017, Bemis announced that it had hired Goldman Sachs to explore strategic alternatives to add value for shareholders, including selling the company to outside interests. Bemis, which is almost 160 years old, is thought to be an attractive takeover target for DS Smith, a U.K. company specializing in corrugated and plastic packaging. Another possible buyer is Swiss packaging giant Amcor Ltd., which specializes in flexible plastic packaging. Earlier this year—and halfway through a year-long turnaround effort—the company concluded that a sale may, in fact, be necessary to ensure its future. One of its top shareholders is New York activist investor Starboard Value. It has, in the past, pushed for the sale of other underperforming packaging companies it held interest in. They include Wausau Paper and MeadWestvaco. In both those cases, Starboard was successful in getting them to deliver…