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Worldwide Paper (NYSE:IPBrazilian firm Suzano (SUZ) is reportedly trying to increase as much as $19 billion in debt to pursue a deal, and the corporate’s shares could possibly be price $54-$57 in a possible acquisition by Suzano (SUZ).
“That is according to “We now have lengthy believed IP shareholders would contemplate this vary, however we suspect the board sees intrinsic worth considerably above these ranges,” Jefferies analyst Philip Ng wrote in a notice on Frida. Ng has a purchase score and a 57 USD goal worth on worldwide paper (mental property).
Bloomberg reported earlier Thursday, citing folks acquainted with the matter, that Suzanne may borrow as much as $19 billion whereas nonetheless retaining the mixed firm’s web debt at shut to 5 instances earnings earlier than curiosity, taxes, depreciation, and amortization.
“With IP shareholders urging the corporate to divest its cellulose enterprise, we predict it’s extremely unlikely that IP shareholders might be prepared to just accept Brazilian pulp shares, and Suzano’s share worth has been falling because the information broke.” We really feel for IP ,” Wu added. “Information that Suzano intends to borrow $19 billion is according to our view that any money provide beneath round $50 wouldn’t be taken severely.”
Jefferies NG has a Purchase score and $57 worth goal on Intl Paper (IP).
Intl Paper (IP) reportedly rejected Suzano’s (SUZ) $42 per share bid as too low. Reuters reported final month that the Brazilian pulp and paper firm was contemplating rising its $15 billion takeover provide by just a few {dollars}.
