A group of hedge funds that owns a combined 9 percent stake in Smurfit-Stone Container Corp (SSCC.N) said it would vote against Rock-Tenn Co's (RKT.N) $3.5 billion deal to buy the packaging and paper company. Third Point, Royal Capital Management and Monarch Alternative Capital said in a letter to Smurfit-Stone's board on Wednesday that the company could go it alone and shareholders would be better off. "We believe that the acquisition by Rock-Tenn substantially undervalues the company and we are acutely disappointed that the board of directors is willing to throw in the towel on the significant upside inherent in the company's assets," the investors wrote in the letter.
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