International Paper, Suzano deal seems unlikely - analysts
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
- Unlikely Acquisition by Suzano: Analysts believe that Suzano's potential acquisition of International Paper is unlikely due to the need for a significant increase in the bid.
- Suzano's Offer and Market Reaction: Suzano approached IP with a $42 per share all-cash offer, causing IP shares to rise by 6% and Suzano ADRs to drop by 9%.
- IP's Potential Response: It is suggested that IP may be more inclined to sell its pulp business rather than the entire company to Suzano.
- Analysts' Perspectives: Analysts like Philip Ng and Mark Weintraub speculate on the possibility of Suzano's interest in IP's pulp business and the confusion surrounding the potential deal.
- Recent IP Acquisitions: IP recently agreed to acquire DS Smith for $9.9 billion after Mondi backed away from its initial offer.
Analyst Views on SUZ
About SUZ
Suzano SA, formerly Suzano Papel e Celulose SA is a Brazil-based forestry company. It is a developer of products made from eucalyptus forests and a vertically integrated producer of eucalyptus pulp and paper in Latin America. Its purpose is to manufacture, trade, import and export pulp, paper and other products. The Company’s product portfolio includes coated and uncoated printing and writing paper, paperboard, tissue paper, market pulp and fluff pulp. Suzano’s operations are divided into two segments: Pulp and Paper. The Pulp segment includes the production and commercialization of eucalyptus pulp for the foreign market, with the surplus destined for the domestic market, while the Paper segment covers the activities of production and sale of uncoated and coated paperboard and tissue. The Company has numerous subsidiaries, including Fibria Terminal de Celulose de Santos Spe SA, FuturaGene Biotechnology Shanghai Co Ltd and Suzano Pulp and Paper Europe SA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
