International Paper Shares Drop After Suzano Walks Away From Bid Talks

By Michael Susin

International Paper shares fell after the Brazilian pulp and paper company Suzano walked away from the takeover talks, scrapping a deal that could be worth almost $15 billion.

Shares were down 15% at $39.80 in Thursday's premarket trading.

In a statement released Wednesday, Suzano's Chief Financial Officer Marcelo Bacci said the group won't pursue the acquisition and has reached the maximum price for the deal to generate value for Suzano, without disclosing financial details around the offer. The CFO also said there wasn't engagement from IP.

"It is important to emphasize that it has always been a condition of Suzano for the completion of this transaction that the engagement between the parties be based on private, confidential and amicable terms. As it was not possible to proceed in this manner, Suzano has decided to terminate the negotiations," Bacci added.

According to media reports on May 7, Suzano approached the paper-products maker about an all-cash acquisition that would be worth almost $15 billion. Reuters reported that Suzano has verbally communicated a $42-a-share offer, representing a nearly 14% premium to its closing price of $36.92 a day earlier.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

June 27, 2024 06:44 ET (10:44 GMT)

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