Hefty Bag maker bought for $6B; stock jumps 5%

By Julianne Pepitone, staff reporter

NEW YORK (CNNMoney.com) -- Pactiv Corp.'s stock jumped 5% Tuesday after the maker of Hefty trash and sandwich bags said Reynolds Group Holding would acquire it for $6 billion.

Pactiv shareholders will receive $33.25 in cash for each share of common stock. That's a 39% premium over Pactiv's closing price of $23.97 on May 14, the last trading day before reports were published about a potential deal.

The acquisition should close by the end of 2010.

Pactiv (PTV) shares climbed 5.5% to $32.62 in early trading.

Pactiv said its board of directors unanimously approved the deal and will recommend that common shareholders do the same. Shareholders will have a special meeting after the company files a statement with the Securities and Exchange Commission.

Reynolds Group Holding is a wholly owned unit of New Zealand-based Rank Group Ltd. To top of page

Index Last Change % Change
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Data as of 5:52pm ET
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Facebook Inc 168.15 -4.41 -2.56%
General Electric Co 13.64 -0.43 -3.06%
Oracle Corp 47.05 -4.90 -9.43%
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Micron Technology In... 61.15 1.01 1.68%
Data as of 4:15pm ET


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