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.