Pactiv Acquisition May Initiate A Trend (PTV)

Pactiv PTV has attracted a number of bidders for itself. The valuation is likely to be in the range of $4 billion, and will be one of the largest deals in the packaging sector. According to The Wall Street Journal, The packaging sector had been consolidating prior to the economic crisis, but the freezing of the credit stalled the process. However, the companies in the sector are financially healthy and therefore the sector is ripe for major buyouts. The initial reports of a possible deal also gave a boost to Pactiv’s peers. Pactiv shares have gained 23% since Friday’s close.