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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
Dow 17,891.16 117.52 0.66%
Nasdaq 4,817.59 42.23 0.88%
S&P 500 2,081.43 16.13 0.78%
Treasuries 1.86 0.05 2.53%
Data as of 1:44am ET
Company Price Change % Change
Bank of America Corp... 14.77 0.21 1.44%
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Apple Inc 93.64 -0.10 -0.11%
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Frontier Communicati... 5.44 -0.12 -2.16%
Data as of May 2
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