End of deal talks sends International Paper's stock lower

By Steve Goldstein

Suzano and DS Smith shares jump

International Paper Co.'s stock slumped while that of Britain's DS Smith PLC surged Thursday, as Brazil's Suzano said it would not pursue a takeover of the U.S.-based company.

International Paper (IP) shares slumped 9% in early New York trade. U.S.-listed Suzano S/A shares (SUZ) jumped 14%.

"After some negotiations with the International Paper Company regarding a potential transaction between the companies, the Company has reached what it believes to be the maximum price for the transaction to generate value for Suzano, without engagement from the other party," the Brazilian company said.

"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," the company added.

That spelled good news for DS Smith shareholders, as International Paper has agreed to buy the U.K. packaging company in a deal that's already received U.S. antitrust approval. DS Smith shares (UK:SMDS) jumped 14% in London.

-Steve Goldstein

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06-27-24 1031ET

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