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Update 2:20pm: Updates shares, adds Intl Paper comment.
International Paper (NYSE:IP) dropped 6.3% as DS Smith (OTCPK:DITHF) confirmed that it’s in talks with company about a potential takeover offer.
DS Smith shareholders would receive 0.1285 shares in International Paper (IP) for each share they own. The terms of the offer represent a value of 415 pence and premium of 48%.
International Paper (IP) confided its proposal to buy DS Smith, according to media reports from Dow Jones and Bloomberg. The board “sees acquisition as aligned with strategy to enhance corrugated packaging business in Europe.”
A potential deal for DS Smith may break up
Mondi’s (MNODF) £5.1 billion for DS Smith that was announced earlier this month.
DS Smith said it also continues talks with Mondi. International Paper (IP) is required by 5pm on April 23 to announce a firm intention to make an offer for DS Smith.
News of the bid was earlier reported by Sky News.