UPDATE 2-DS Smith agrees $7.2 bln all-share deal with International Paper
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 16 2024
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Source: Yahoo Finance
- International Paper Acquisition: International Paper has agreed to acquire DS Smith in an all-share deal valued at 5.8 billion pounds, surpassing a bid by Mondi.
- Deal Details: DS Smith received proposals from both International Paper and Mondi, with the U.S. company now making a firm offer before the deadline.
- Shareholder Ownership: After the acquisition, DS Smith shareholders will own about 33.7% of the combined company, with International Paper shareholders owning the rest.
- Recommendation and Approval: DS Smith plans to recommend shareholders to support the deal with International Paper, pending a shareholder vote and regulatory approval.
- Impact on Jobs: International Paper's acquisition may lead to around 400 job roles being at risk across the combined company, subject to review.
Analyst Views on IP
Wall Street analysts forecast IP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IP is 48.35 USD with a low forecast of 36.00 USD and a high forecast of 57.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company provides sustainable packaging solutions. The Company is a global producer of renewable fiber-based packaging products. Its segments include Packaging Solutions North America and Packaging Solutions EMEA. Packaging Solutions North America and Packaging Solutions EMEA segments are primarily focused on producing fiber-based packaging. It produces linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of its production is converted into corrugated packaging and other packaging. The Company’s recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and its own box plants by managing recovered fiber streams used in packaging production.
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.
