DS Smith PLC (LSE:SMDS) shares perked up after its US-based bidder promised to set up a secondary listing in London and situate its European headquarters in the capital should its takeover offer be accepted over a rival bid from South Africa's Mondi.
International Paper Co (NYSE:IP, ETR:INP) said it would make sure to keep DS Smith's existing HQ along with "key elements" of the London office.
IP said it expected to seek a secondary listing of its shares on the London Stock Exchange if it won.
A £5.7 billion offer was tabled by the Memphis-based company last month, just a few weeks after DS Smith agreed to merge with Mondi PLC (LSE:MNDI) in a £5.1 billion deal.
Earlier today, DS Smith said it had made progress in talks with Mondi despite receiving the offer from International Paper.
In particular, there is a new agreement in principle about a possible all-share offer by Mondi, where the South African group would acquire the entire share capital of DS Smith.
Accordingly, the put-up-or-shut-up (PUSU) deadline for Mondi has been extended to 5pm on 23 April to iron out more details (or wait for a bigger offer from the Americans).
DS Smith shares, which had been flat during morning trading, rose by 1.5%.