On Tuesday, Reuters reported that Suzano, a Brazilian company, expressed interest in an all-cash acquisition of International Paper Company (NYSE:IP), a U.S.-based company.
The publication, citing people familiar with the matter, said the deal would be worth almost $15 billion.
The Brazilian pulp and paper company's approach comes less than a month after International Paper agreed to acquire British packaging business DS Smith for $7.2 billion.
The deal for DS Smith is scheduled to close by the fourth quarter of 2024. However, Reuters notes it could be disrupted if Suzano presses ahead with a bid for International Paper.
Suzano is said to have communicated its $42-per-share offer to International Paper's board verbally. In addition, it is reported they could submit a formal bid in the coming days.
International Paper shares have surged Tuesday, currently trading 6% above Monday's close at $39.15 per share. The stock initially hit a high of over $41 a share.
Nevertheless, Reuters added that one of its sources said International Paper is poised to reject Suzano's offer as inadequate.
The offer from Suzano is said to be conditional on International Paper abandoning its deal with DS Smith.