SIG Holding AG, a Swiss packaging machinery maker that was the target of two takeover bids, gave its backing to a sweetened offer from New Zealand billionaire Graeme Hart's Rank Group Holdings Ltd that values the company at CHF2.8 billion ($2.3 billion).

SIG Holding AG, a Swiss packaging machinery maker that was the target of two takeover bids, gave its backing to a sweetened offer from New Zealand billionaire Graeme Hart's Rank Group Holdings Ltd that values the company at CHF2.8 billion ($2.3 billion).

Rank on March 13 raised its offer for Neuhausen-based SIG by 18% to CHF435 ($359) a share in cash. That topped a rival CHF400 a share approach from Norwegian packaging group Ferd Holding AS and CVC Capital Partners, which withdrew their offer because the price had climbed by too much.

For Hart, buying SIG would expand a paper-products business that includes Carter Holt Harvey Ltd, an Auckland-based forestry company bought last year for about $2.3 billion. Rank Group, which holds at least 22.3% of SIG, already won European antitrust approval for the deal.

The cartons market is dominated by Tetra Pak, the company owned by Sweden's Rausing family, with 80% of the market, according to Johannes Borner, an analyst at Bank Sal Oppenheim Jr & Cie in Zurich. SIG has about 15% and Elopak 7.5%, with International Paper Co ranking fourth.

To read more about this story, go to Bloomberg.com

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