CVC In Talks with Austria’s Constantia Packaging

VIENNA (Reuters) – Private equity firm CVC is in non-exclusive talks to buy a stake in Austria’s Constantia Packaging (CVER.VI) held by holding firm Constantia B.V., the holding firm said on Thursday.

Constantia B.V., in a statement, partially confirmed a report in Austrian weekly magazine Format released earlier on Thursday, but declined to be drawn on detail reported by Format. A spokeswoman for CVC also confirmed the talks.

Format said the talks were about CVC taking over a 90 percent stake in Constantia Packaging for 510 million euros ($726 million) and were part of a broader deal to settle a dispute between Constantia B.V. and a former affiliated company.

Constantia B.V. has been trying in different ways to use its stake in Constantia Packaging, worth around 470 million euros at Thursday’s share price, to settle a financial claim that real estate developer Immoeast (IMEA.VI) has against it. ($1=.7028 Euro)

(Reporting by Boris Groendahl; editing by Simon Jessop)