27th Jun 2024 09:01
(Alliance News) - Packaging firm DS Smith PLC shares rose on Thursday after Brazil's Suzano SA ended its pursuit of International Paper Co, adding some certainty to the fate of the London listing.
DS Smith shares rose 6.1% to 391.00 pence each in London on Thursday morning. International Paper, however, tumbled 13% after hours in New York.
Suzano last month confirmed its interest in acquiring International Paper. Such a deal would have thrown into doubt International Paper's acquisition of DS Smith.
However, Suzano said Wednesday: "It is important to emphasize that it has always been a condition of Suzano for the completion of this transaction that the engagement between the parties be based on private, confidential, and amicable terms. As it was not possible to proceed in this manner, Suzano has decided to terminate the negotiations."
On Tuesday, International Paper's buy of DS Smith cleared a regulatory hurdle. The waiting period under the US Hart-Scott-Rodino Act expired.
London-based DS Smith agreed an all-share takeover by Memphis, Tennessee-based International Paper in April, in a deal which valued the FTSE 100 listing at GBP5.8 billion on a fully diluted basis.
By Eric Cunha, Alliance News news editor
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