International Paper (NYSE:IP) might be valued at $54-$57 per share if it gets bought by Suzano (SUZ). Here are the key points:
- Takeover Interest: Suzano is reportedly interested in buying International Paper.
- Debt Raising: Suzano is looking to raise up to $19 billion in debt to fund this acquisition.
- Debt Management: Even with this borrowing, the combined company’s net debt would be close to five times its earnings before interest, taxes, depreciation, and amortization (EBITDA).
- Analyst’s View: Jefferies’ analyst, Ng, has a buy rating on International Paper and believes the stock could reach $57.
- Current Offer Rejected: International Paper has turned down Suzano’s initial offer of $42 per share, considering it too low.
- Possible Increase: Suzano might increase its $15 billion offer by a few dollars more per share, as reported by Reuters.
In summary, Suzano is planning a significant financial move to acquire International Paper, potentially valuing it at $54-$57 per share. This involves borrowing a substantial amount, but the debt would be manageable relative to earnings. International Paper has already rejected a lower offer, and Suzano may raise its bid to secure the deal.
About International Paper
International Paper is a global leader in the production of fiber-based products, offering a wide range of solutions that are essential in everyday life. They specialize in creating packaging that not only secures and showcases goods but also facilitates global trade and consumer safety. Their portfolio includes the manufacturing of pulp, which is a key material for personal hygiene products like diapers and tissues.
The company is committed to innovation and sustainability, continuously advancing with new technologies and ideas to ensure a positive impact on customers, employees, shareholders, and communities. They prioritize safety, integrity, and respect, fostering a culture of transparency and accountability.
International Paper takes pride in being environmentally responsible, aiming to improve conditions for future generations. They stand by their promise to deliver exceptional service to customers and strive to cultivate a workplace where every employee feels valued and can excel.
With a presence across the globe, International Paper operates with a strong ethical code and is dedicated to conducting business with integrity. They are actively involved in creating eco-friendly packaging and pulp solutions to meet the demands of today while preparing for tomorrow’s challenges.
About Suzano
- Centennial Brazilian Multinational: This Suzano has a storied 100-year history and draws inspiration from the natural cycle of renewal observed in trees to foster a more sustainable future.
- Leading Pulp and Paper Producer: As the world’s top producer of pulp and a major paper manufacturer in Latin America, the company is at the forefront of the bioeconomy, crafting sustainable and innovative products from responsibly cultivated eucalyptus.
- Global Presence in Daily Life: Their eco-friendly products, ranging from hygiene essentials to various paper applications, touch the lives of over 2 billion people globally, simplifying everyday tasks.
- Commitment to Sustainability: The company’s dedication to sustainability is reflected in its 15 long-term commitments, which align with the UN Sustainable Development Goals, aiming to address pressing societal issues.
The company’s ethos is encapsulated by three cultural drivers: ensuring mutual benefit for the company and the world, fostering people who inspire change, and creating and sharing value. They maintain a widespread operational presence across Brazil and internationally, and they’re investing in advanced paper and pulp technology.
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