Suzano is no longer pursuing a takeover of International Paper, according to Bloomberg, which isn’t a total surprise given it’s limited balance sheet, Jefferies analyst Philip Ng tells investors in a research note. The firm believes the share pullback is a great buying opportunity and thinks the stock is worth at least in the low $50s following the $40/containerboard increase realization. Jefferies doesn’t get the sense International Paper’s largest shareholders were pushing IP‘s board to engage with Suzano, and still believes Suzano, and possibly Georgia Pacific and Paper Excellence could be logical buyers of IP’s Cellulose business, which could command a $2B takeout price.
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