International Paper Confirms Unsolicited Bids for EMEA Packaging Unit, Weighs Sale Against Spin-off
IP sits 16% above its 52-week low of $29.26.
Summary
International Paper confirmed it is evaluating unsolicited bids for its EMEA Packaging Business and is in talks with potential buyers, while still progressing with the previously announced spin-off. The company reaffirmed the spin-off would be effected through a London Stock Exchange listing with a Level II ADR on the NYSE, but gave no assurance on the ultimate timing or structure. This follows the October 15 report that Lone Star and Atlas Holdings were the last two private equity bidders in talks for the unit. The dual-track process matters because the EMEA segment has been a drag — it posted an operating loss in Q2 and was central to the soft demand that drove the Q2 sales miss and weak Q3 EBITDA guidance. Shares closed at $34.10, up 6.90%, reflecting the market's read that a sale could unlock value faster than a spin-off.
At the time of this announcement, IP was trading at $34.07 on NYSE in the Manufacturing sector, with a market capitalization of approximately $18.1B. The 52-week trading range was $29.26 to $50.25. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.