Dr Michael Smurfit netted €21.3 million for the sale of almost two million shares in the troubled US-based Smurfit Stone Container Corporation (SSCC) over a six-week period in September and October.
Documents that Dr Smurfit filed with the US Securities and Exchange Commission (SEC) show that he disposed of a total of 1.95 million shares in 12 transactions between August 29th and October 13th last. The shares were priced at between $10 and $16.17, and were worth a total of $24.74 million (€21.3 million).
Chicago-headquartered SSCC this week announced that it had lost $47 million during the third quarter of 2003, compared with a net income of $43 million during the same period last year. Recently, the paper board and packaging manufacturer announced a major rationalisation plan that would lead to the loss of 1,400 jobs across its US facilities over the next 18 months.
The filings describe Dr Smurfit as "chairman of the board". However, last May he announced that he was stepping down as chairman of SSCC. A spokesman for the group last night said that he had stepped down. He added that SSCC was not in a position to speculate about Dr Smurfit's motives for selling the shares.
A spokesman for Jefferson Smurfit Group, SSCC's former Irish shareholder, refused to comment last night on the basis that the share dealings were not related to Jefferson Smurfit.
Dr Smurfit was left with a stake in the US company after Jefferson Smurfit Group sold its 29.3 per cent stake to the US shareholders in September 2002. The deal followed the successful Madison Dearborn bid to take Jefferson Smurfit private.
That deal earned Dr Smurfit €159 million in cash and SSCC shares valued at €70 million at the time. He is chief executive of the private Jefferson Smurfit and holds a 7.38 per cent share in that business.
One New York-based analyst, who did not want to be named, last night suggested that Dr Smurfit's disposal was related to the fact that Jefferson Smurfit wanted to distance itself from SSCC. The analyst said the market expected him to sell some of his stake, but added that he had sold more than predicted.
Jefferson Smurfit all but exited the North American market last January when it exchanged €185 million and its 50 per cent holding in Canada-based Smurfit MBI for SSCC's European businesses. The Irish company's main businesses are now focused on Europe and South America.
A number of SSCC's American executives, including the head of its consumer packaging division, Mr Scott McFarlane, have also been selling shares.
