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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 21,410.03 -57.11 -0.27%
Nasdaq 6,233.95 45.92 0.74%
S&P 500 2,435.61 -1.42 -0.06%
Treasuries 2.16 0.00 0.09%
Data as of 8:12am ET
Company Price Change % Change
Advanced Micro Devic... 13.98 1.34 10.60%
Chesapeake Energy Co... 4.52 -0.39 -7.94%
Bank of America Corp... 23.13 -0.36 -1.53%
Ford Motor Co 11.04 -0.07 -0.63%
General Electric Co 27.78 -0.35 -1.24%
Data as of Jun 21
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