I'm a late comer to the CKL party having picked up a few this morning and was sent sent this press article although I don't know the source so hope I'm not contravening any copy write rules.
Shares in carton maker Colorpak have risen almost 6 per cent to record highs in the past week and it's not just because of better than expected 2013 profits. The company, which competes with Amcor in the $620 million carton market, is considered a potential target for Amcor's soon-to-be-demerged Australasia and Packaging Distribution (AAPD) business. A takeover would lift AAPD's carton sales from around $200 million to $370 million and double market share to 53 per cent. Once demerged, AAPD could issue scrip, enabling Colorpak's 31 per cent shareholders, the Commins family, to maintain a stake in the entity. Colorpak managing director Alex Commins says the speculation is just that, but agrees a merger has merit. "In Australia we are clearly operating in a regional market and for companies to compete on that platform we need scale and efficiency," he says. As to whether the family would sell, he says: "Everybody has their price, whether they're family or a shareholder."
CKL Price at posting:
87.5¢ Sentiment: Buy Disclosure: Held
