The German carton manufacturer now holds 13.4% in the business and has said that the UK company is "ideally placed" in terms of its geographic reach.
Tom Rothwell, packaging specialist at Lansdowne Capital, told PrintWeek sister title Packaging News that Chesapeake had been in a "sorry state" for a while, reflected in its poor share price performance, which has left the business "vulnerable to a potential takeover".
In March, Chesapeake reported a $1.9m (£1.05m) loss from continuing operations, excluding special items, compared with a $7m profit in 2006.
Sales in Chesapeake's Paperboard Packaging division fell 3% following the loss of substantial business with British American Tobacco (BAT), although this was partially offset by increased sales of German confectionery.
Edelmann, which has operations across the UK, Poland, France and the US, specialises in pharmaceutical, premium and intelligent system packaging for liquids, powdered, granulated and highly viscous products.
Chesapeake takeover talk intensifies as Edelmann increases stake
Speculation over a possible takeover bid for packaging giant Chesapeake is mounting following the move by Edelmann Group to increase its stake in the company.
