Brazil's Suzano confirms interest in International Paper assets (updated)

Suzano SA

22/05/2024 15:11

(Adds more context, share reaction in paragraphs 2-6)
       SAO PAULO, May 22 (Reuters) - Brazilian pulpmaker Suzano
 SUZB3.SA  confirmed on Wednesday it is interested in assets
owned by International Paper  IP.N , but said that it has not
reached any final decision about a deal.
    Reuters reported this week that Suzano was in talks with
advisers about sweetening an offer for International Paper,
after approaching the U.S.-based firm to express interest
verbally in an all-cash acquisition worth $15 billion.
        In a securities filing answering regulatory questions
about recent volatility of its shares, Suzano confirmed its
interest in the assets but said that "up to the moment, there is
no agreement, binding or otherwise, nor any decision or
deliberation" by its management regarding a deal.
  
        The deal would be conditioned on International Paper
abandoning its 
    recently announced
     agreement to acquire British packaging firm DS Smith
 SMDS.L  for $7.2 billion, sources said.
  
        In an earnings conference call after Reuters reported
Suzano's initial proposal, outgoing Chief Executive Walter
Schalka 
    said
     its management "will not do anything that could put the
company at risk".
  
        Shares in Suzano, which fell nearly 18% since news of
the talks broke until Tuesday's closing, were down an additional
0.3% in Wednesday morning trading. 
  

 (Reporting by Peter Frontini; Editing by Gabriel Araujo and
Brad Haynes)
 ((Peter.Siqueira@thomsonreuters.com;))