FX.co ★ International Paper Says No Comments On Rumors Amid Strategic Initiatives And DS Smith Merger Plans

International Paper (IP) recently reiterated its policy of not discussing rumors or speculations present in various media reports. Under the guidance of their new CEO, Andy Silvernail, the IP team is actively crafting new business strategies and seeking commercial and cost improvements across its portfolio.

IP continues to pledge its commitment towards the completion of its previously announced merger with DS Smith. However, recent news from Reuters suggested a potential disruption in this plan. São Paulo-based paper producer, Suzano, reportedly approached IP with a $15 billion acquisition proposal. If accepted, this could impact IP's pending acquisition of the U.K-based company, DS Smith, for which IP had outbid another competitor, Monty Plc.

Last month, IP and DS Smith agreed on an all-share combination deal. In this arrangement, each DS Smith share is valued at 415 pence and for every DS Smith share, IP is set to issue 0.1285 shares. This would result in 66.3% ownership for IP's shareholders and 33.7% for DS Smith's shareholders, implying a transaction value of approximately $9.9 billion.