A $1.13 billion loan package backing Chesapeake Corp.'s hostile bid for two of its packaging rivals may box the company in, analysts said.

The loan, being led by First Union Corp., will be used by Richmond, Va.-based Chesapeake to fund its reverse hostile bid for Shorewood Packaging Group and Boxmore International PLC. Chesapeake, which makes packaging for such household brand names as Ore Ida and Duracell, is looking to trim costs through consolidation.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.