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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 17,751.39 121.12 0.69%
Nasdaq 5,111.73 22.53 0.44%
S&P 500 2,108.57 15.32 0.73%
Treasuries 2.28 0.03 1.29%
Data as of 2:21am ET
Company Price Change % Change
Bank of America Corp... 18.16 0.28 1.57%
Facebook Inc 96.99 1.70 1.78%
Ford Motor Co 15.21 0.53 3.61%
Pfizer Inc 35.76 0.41 1.16%
AT&T Inc 34.69 0.36 1.05%
Data as of Jul 29
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