The European merger arbitrage community has been given a boost after enough shareholders in Jefferson Smurfit, the Irish paper and packaging company, accepted a €3.3bn ($3.3bn) takeover offer to prevent the bidder walking away.

The 83% acceptance of the bid means Madison Dearborn, the private equity firm that made the offer, cannot abandon it. There was widespread concern in the arbitrage community that it would drop the bid if the level of acceptances did not reach the 80% mark, above which it was legally bound to push ahead with the deal.