Ropak Says Suitor Linpac Withdrew Offer After Rejection

Ropak Corp. said Thursday that major shareholder Linpac Mouldings Ltd. has withdrawn its $44-million offer after being rebuffed by Ropak’s directors.

The action came after Fullerton-based Ropak rejected Linpac’s proposal a second time. Ropak, a Fullerton-based maker of plastic shipping containers, turned down the same offer earlier this month, calling it inadequate. The offer was first announced in October.

Ropak said Thursday that Linpac, a maker of plastic and metal packaging, intends to “continue to evaluate its options.” Closely held Linpac, based in Birmingham, England, made its offer in October after an agreement between Linpac and the Roper family, Ropak’s founders.

The Roper family granted Linpac the right to vote Ropak shares held by the family and options to buy the family’s 25% stake in Ropak.

The acquisition offer had called for the Ropers to get $14.75 a share for their options if the merger were not completed, with the premium to compensate them for prospective loss of employment. If the merger was completed, they would get $10.50 a share.

Ropak also said Thursday that Linpac owns or holds options for 2.5 million Ropak common shares, or 50.5%.

The role of the Roper family in Ropak’s operations now is unclear. Under the buyout proposal, they would have remained in executive positions for as long as four years after the acquisition.

In Thursday’s Nasdaq trading, Ropak’s stock fell $1 a share to close at $9.75.