International Paper Stock Tumbles as Brazil’s Suzano Ends Takeover Effort

International Paper (IP) shares sank in intraday trading Thursday after Brazilian pulp and paper provider Suzano announced that it was no longer pursuing a purchase of its American rival.

Suzano Chief Financial Officer (CFO) Marcelo Feriozzi Bacci blamed the breakdown on International Paper. He wrote in a regulatory filing that his firm “has reached what it believes to be the maximum price for the transaction to generate value for Suzano, without engagement from the other party.”

Bacci did not indicate what that price was.

He added that for the transaction to have been completed, “the engagement between the parties be based on private, confidential, and amicable terms.” He argued that since “it was not possible to proceed in this manner, Suzano has decided to terminate the negotiations.”

International Paper Shares Soared Last Month on Proposed $15B Offer

Shares of International Paper jumped last month following reports, including from Reuters, that Suzano had proposed a $15 billion, all-cash offer for the company. Reuters said then that the $42-per-share bid was given verbally to International Paper’s board, and could be formally made “in the coming days.”

In response, Bacci put out a statement that Suzano “clarifies that, to date, there is no formal document or celebration of any agreement, binding or otherwise, by Suzano, nor any decision or resolution of its management bodies regarding the potential operation reported by the media.”

Investopedia has yet to hear back from International Paper for comment.

Shares of International Paper sank 6.9% to $43.38 as of 11:45 a.m. ET Thursday but are 20% higher year-to-date.