March 8 Reuters Shares in DS Smith rose more than 7 on Friday, a day after bigger rival Mondi made a 5.14 billion pound 6.58 billion allshare offer to buy the British paper and packaging group.

The deal, which will create a packaging giant worth more than 11 billion pounds, valued DS Smith at about 373 pence per share, a 33 premium to its closing price before Mondi made its interest public last month.

Anticipating limited regulatory hurdles or thirdparty interloper risks, we believe the proposed merger benefits both Mondi and DS Smith shareholders, Davy Research analyst Justin Jordan wrote in a note.

Shares in DS Smith, whose customers include ecommerce giant Amazon among others, have rallied since Mondi39;s approach first came to light in early February. The stock hit a more than oneyear high of 350 pence in early trade.

Mondi shares, however, fell 2.5.

While the key financial terms have been agreed upon in principle, the combination is still conditional on other terms and conditions.

1 0.7812 pounds

Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich

Source Reuters