SUZ - Why International Paper Stock Spiked Higher Today
2024-05-07 15:48:00 ET
Brazilian paper giant Suzano (NYSE: SUZ) has reportedly approached U.S. rival International Paper (NYSE: IP) about an all-cash $15 billion takeover. Shares of IP jumped 11.9% higher when the report surfaced, only to fall back to up 5% in the final hour of trading on Tuesday.
There's been a wave of consolidation in the paper and packaging industry. Last year, Smurfit Kappa Group agreed to acquire WestRock for $11.2 billion, and Mondi and International Paper engaged in a bidding war for DS Smith .
Suzano is apparently prepared to get into the act. Reuters reported that the company has approached International Paper about a potential deal with an offer that would represent a premium of about 14% over the company's Monday closing price.
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Why International Paper Stock Spiked Higher Today