DS Smith confirmed on Tuesday it was in discussions with International Paper over an all-stock offer from the U.S.-listed company, which valued the British paper and packaging firm at 5.72 billion pounds ($7.22 billion).
Under the terms of the proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith.
If the proposed deal goes through, DS Smith shareholders will own about 33.8% of the combined company.
Accordingly, the Board is progressing its discussions with International Paper regarding the Proposal," DS Smith said.
Deal talks between DS Smith and International Paper were first reported by Sky News on Tuesday.
Persons:
DS Smith, Smith, Mondi
Organizations:
Weyerhaeuser Company, DS, Deal, Sky News
Locations:
Gdansk, Poland, U.S