Large Boise investor won't back Packaging Corp deal
Sept 24 (Reuters) - One of Boise Inc's largest shareholders doesn't plan to vote for the paper and packaging company's $1.28 billion takeover by rival Packaging Corp of America and said Boise should spin-off its paper business instead.
Carlson Capital, which owns about 6.6 percent of Boise's outstanding shares, said in a filing with U.S. regulators on Tuesday that it believes Boise is worth $14 a share to $17 a share, significantly more than Packaging Corp's $12.55 a share bid.
Carlson said that spinning off the paper business would create two standalone companies that could then be taken over or could consolidate within their sectors.
The investor also said that the Packaging Corp deal does not take into account recent increases in paper pricing.
Shares of Boise rose 1.2 percent to $12.67 in morning trading on the New York Stock Exchange.
(Reporting by Michael Erman; Editing by Gerald E. McCormick)