30 Aug 2010

Loss posted by Hart's packaging company

12:20 pm on 30 August 2010

Reynolds Group has posted a first-half loss as rising production costs squeezed its margins.

Graeme Hart's packaging company lost 103.3 million euros in the six months to June 30, compared with a year earlier.

Revenue rose 10% to 2.1 billion euros due to an increase in demand from Asia and South America, though the company's earnings shrank.

Reynolds is offering $US6 billion for Pactiv Group to challenge Tetra Laval, a larger rival.

Reynolds is looking to raise $US4 billion in new debt to fund the purchase, with Reynolds putting up between $US500 - $US750 million of equity.

Mr Hart will controbite $US200 million in cash.