IP issues statement after takeover rumours

Packaging giant International Paper (IP) has issued a statement after Reuters reported the company was about to be the subject of a $15 billion takeover bid by Brazil-based Suzano.

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Packaging giant International Paper (IP) has issued a statement after Reuters reported the company was about to be the subject of a $15 billion takeover bid by Brazil-based Suzano.

Those looking or hoping for something meaningful from IP were left disappointed by the company saying it was offering “no comment on rumours or speculation contained in recent media reports”. Instead, its PR representatives trundled out the following:

“The IP team, led by new CEO Andy Silvernail, is executing on business strategies and pursuing commercial and cost improvement initiatives across the portfolio to achieve best-in-class profit margins and significant earnings growth. In addition, as industry conditions continue to improve, IP will come out of a cyclical bottom for earnings. The company is also focused on completing its previously announced combination with DS Smith, which offers a unique and highly compelling opportunity to create significant shareholder value above its base plan.”

It has been suggested that any move by Suzano will require IP to abandon its attempt to buy UK-based DS Smith.

Suzano also published a statement in which it said that “to date”, it has not made any type of offer for IP nor has its board passed a resolution regarding such a transaction. However, it did write that the company “is continuously analysing market opportunities and investments aligned with its strategy”.

Possibly a question of no smoke without fire? More might be revealed when Suzano reports its quarterly results tomorrow (9 May).

Memphis (TN), USA & São Paulo, Brazil