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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Smith (ds) Plc | SMDS | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 5.50 | 0.96% | 580.00 | 11:34:31 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 580.50 | 576.50 | 580.50 | 574.50 |
| Industry Sector |
|---|
| GENERAL INDUSTRIALS |
| Top Posts |
|---|
Posted at 10/6/2024 07:00 by moorsie2 Brazilian pulp and paper giant Suzano (BCBA:SUZm) is reportedly looking to secure up to $19 billion in debt to potentially acquire International Paper (NYSE:IP), according to Bloomberg.Analysts from Jefferies are predicting a potential cash offer for IP in the range of $54-57 per share, a figure that aligns with previous investor expectations. However, IP's board may value the company significantly higher. Suzano's strategic move is geared towards creating a global industry leader with robust cash generation capabilities to expedite debt reduction. The company is also nearing the completion of a $4.2 billion project to boost its hardwood pulp capacity, which is expected to further enhance its free cash flow. The reported $19 billion debt that Suzano aims to raise implies a potential acquisition price for IP in the $54-57 range. This would increase Suzano's projected leverage to 5.9 times its 2024 estimated earnings or 5.3 times its 2025 estimates, based on consensus predictions for Suzano and IP model forecasts. Given IP shareholders' push for the company to divest its Cellulose business, it seems unlikely they would accept stock in a Brazilian pulp company. This is particularly true given Suzano's falling share price since expressing interest in IP. Therefore, the news of Suzano's potential $19 billion debt aligns with the expectation that any offer below mid-$50s in cash would likely be rejected. If the $50 per ton increase in linerboard holds, it could boost IP's EBITDA by approximately $550 million or around 26%. Using this framework, IP's shares could reach close to $56, even before considering any uplift from Silvernail's commercial and operational initiatives. In an optimal scenario, shares of IP could approach $90 if IP manages to close the gap on revenue per ton and the $50 per ton increase sticks. However, with mixed investor sentiments regarding the SMDS deal and a potential mid-$50s cash offer, deciding on an equity component becomes more challenging. Especially given that Suzano's stock has dropped by over 20% since initial reports of its interest in IP surfaced, while IP's stock has rallied. Analysts at Jefferies have retained their Buy rating on International Paper (NYSE:IP) with a price target of 57 |
Posted at 17/5/2024 07:14 by moorsie2 There will be some speculation in IPs price re a potential offer.Also there will be an element of value investors seeing it is a good time to get in due to its cyclicality and highlighted by the speculative potential approach SMDS will be well over 4 pounds in Q3 |
Posted at 09/5/2024 08:46 by alotto International Paper is over $39 per share which means £3.90 per share for SMSD. Are investors concerned the deal may not go ahead, hence the discount? When will the SMDS shareholders vote on the proposed acquisition? |
Posted at 24/4/2024 15:29 by anhar ... Anyone looking to cash out is probably kicking themselves for not selling in the market when SMDS went over £4...Indeed, I'm in the self-kicking club and still holding, though have given up trying to kick myself, far too difficult. Was away for a few days during which MNDI pulled out. I continue to reject IP shares so will be selling in the market, no doubt at a much lower price than above now that SMDS price is controlled by the IP price, the random fluctuations of which have pushed them down. I'm a long term income investor and doing nothing in a hurry, on balance, has been the most profitable stance over decades and a large number of corporate activity events. Not this time though. |
Posted at 19/4/2024 11:44 by kirkie001 ... which looks life a value for the takeover at c364p for a DS Smith share. So if it's trading at a shade over 350p currently, then you're talking about a c 12-13p execution risk discount in the price to unwind.. plus a 12p dividend - or about 6-7% FV difference between buying DS Smith and buying International Paper shares direct on the NYSE.Not much... hedgies and arbs will spot it and make the trade for the turn... but for private investors, unless you've a huge amount of capital to buy them and sell forward to lock it in, probably not worth the trade.... unless you'd be a buyer of International paper equity today, irrespective of the acquisition. My tuppence, anyway... |
Posted at 27/3/2024 13:40 by peart Laurence, I think if an investor completes the W8-BEN form that the 30% can be avoided inside an ISA.... But the investor won't be able to reclaim the15% as there's no tax in an ISA.Anyway, that's my understanding, (but I might be wrong) making USA dividend paying stocks somewhat unattractive within an ISA. |
Posted at 26/3/2024 18:57 by laurence llewelyn binliner #Yump, nice in principle, but it does unlock the withholding tax problem for UK investors getting a 15/30% haircut on dividend income from US listings too should it proceed to an offer..?Perhaps MNDI will up their bid on or before the 4th April deadline.. :o) |
Posted at 07/3/2024 15:03 by moorsie2 It has actually stayed in a very narrow range from 8th Feb right upto pm on 7th March. I would read from that, nothing is leaking and some investors are just speculating bets |
Posted at 02/3/2024 13:00 by elsa7878 "What to make of the 25 RNSs released Friday afternoon by both Mondi and DS Smith? Looks to me like just about all the major institutional investors have sold their holding in SMDS? I am not experienced in scenarios like this. What do the more experienced shareholders here think about all those RNSs? If there's no bid, Mondi would dump those shares into the market and SMDS share price would be back to 280p or lower before you know it."Please take a deep breath. We've been through this already. Mondi have not been buying. Institutional investors are making notifications of small changes in their shareholdings. As I explained one was for 13,000 shares, another 30,000 shares etc. Nobody has sold all of their shares or even close to. Click on the name of any of the shareholders. Scroll through the RNS's and compare their recent shareholding notification to the previous time that they noticed et voila you can see if they have bought or sold. In almost all instances it is for a very small amount of their total shareholding. |
Posted at 02/3/2024 12:40 by cruelladeville What to make of the 25 RNSs released Friday afternoon by both Mondi and DS Smith? Looks to me like just about all the major institutional investors have sold their holding in SMDS? I am not experienced in scenarios like this. What do the more experienced shareholders here think about all those RNSs? If there's no bid, Mondi would dump those shares into the market and SMDS share price would be back to 280p or lower before you know it. |
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