Smith (ds) Share Discussion Threads

[buyzantium] 28/5/2024 15:47

Should have mentioned the following which in my view must make a cash takeover by Suzano even less attractive for future prospects and stability - Suzano SA, the world's largest producer of pulp, is in talks with banks including Mizuho Financial Group, Nomura Holdings Inc. and Mitsubishi UFJ Financial Group on the financing of a potential bid for US packaging giant International Paper Co., according to people familiar with the matter.

[buyzantium] 28/5/2024 15:20

After enthusiastically extolling the virtues of a future merger later this year with DS Smith by International Paper it would surprise me if they choose to walk away for a few extra dollars from the present Brazilian suitor. Getting rich quick is a poor decision in comparison to a longer term view of growth potential and more honourable course of action.

[moorsie2] 28/5/2024 12:17

They don't have the balance sheet to offer much more than the touted 42 per share

Also IP is a US institution. It would never be allowed to be swallowed up by a smaller Brazilian player

With a new external CEO and two new NEDs there is no way

[dssmith51] 28/5/2024 11:59

alotto it was pleasing to read your comment. $50 would not cut it. $55 may be too higher price to offer. Hopefully the interested party will end up walking away so that IP is able to finalise the buy out with DS Smith.

[alotto] 28/5/2024 08:25

DSSmith51 at what price? 50 dollars? 10% premium for a company paying 5% dividend. That's would be insane. But short term greed is a thing, so shareholders may accept a pitful offer.

[dssmith51] 28/5/2024 08:09

If IP are are taken over then it could leave the way to Mondi to step in at some point with a higher offer than their initial offer. At this stage anything can happen. I do think IP is likely to be taken over by the Brazilian company.

[alotto] 28/5/2024 06:09

Kinwah possibile, however markets are not always informative about the future.
IP share price may be recovering as the general sentiment for the industry improves.

[kinwah] 28/5/2024 01:01

I've totally exited SMDS. I don't think IP would be anywhere near $45 if it wasn't for the Suzano bid interest. They could offer say $50 a share conditional on IP shareholders voting against the deal. A vote against the transaction would collapse the SMDS price to £3. Much as the discount to the notional offer price is looking attractive, the falling Suzano share price and rising IP price suggests an offer for IP is on its way.

[alotto] 24/5/2024 16:57

If smith is still in the 370 region on Tuesday, I'll add more. 25% in a couple of quarters is not bad, provided that IP share price holds firmly...

[moorsie2] 24/5/2024 16:01

At 45.70, smds would be worth 464p

A 25% discount

[moorsie2] 24/5/2024 16:00

The markets can stay irrational for longer than one can stay solvent...

[alotto] 24/5/2024 15:05

Crazy opening for IP $46 per share.. something must be going on here

[buyzantium] 24/5/2024 08:28

Sadly yes, the Suzano influence has yet to emerge or disappear. I must admit that I was surprised that an analyst's recommendation could have had such an effect to the share price but we shall see. Hopefully International Paper will honour their commitment to DS Smith and it's shareholders.

[moorsie2] 24/5/2024 08:05

I called that opening wrong!!!

Time to give up this game and take up something easier like brain surgery

[buyzantium] 24/5/2024 05:26

I am unable to find any mention by Philip Ng the Jefferies Analyst of the Suzano possible bid which is perhaps significant.

[buyzantium] 24/5/2024 05:16

New CEO Andy Silvernail is an agent of change," Philip Ng, analyst at Jefferies, said in a May 23 report that cited Silvernail's "strong track record" at Idex (IEX). "An area of focus will be on the commercial front, pivoting from going after volumes to maximizing value."Silvernail took over as CEO on May 1 after working at private-equity firm KKR (KKR) as an executive adviser. He also worked at Madison Industries, Rexnord Industries, Newell Rubbermaid and Danaher.The business cycle also is improving for International Paper (IP) as pricing improves and the company broadens its scale in Europe with the acquisition of DS Smith (OTCPK:DSSMY) (OTCPK:DITHF), according to Jefferies. International Paper (IP) last month announced the $9.9 billion deal, which the company expects to close by the fourth quarter.

[alotto] 24/5/2024 04:44

Moorsie I hope you're right

[moorsie2] 23/5/2024 22:14

We will get close to it tomorrow is my guess.

Over 45 dollars now in after tradecmarket

Suzano do not have the leverage to offer 50 for IP so they are now flushed out

So no obstacle to the deal going through

[alotto] 23/5/2024 21:08

Moorsie 446p... But when?

[moorsie2] 23/5/2024 20:48

At 44 dollars now close to market close then smds is worth 446p per share. This is an 18% discount so I expect that to close significantly upon markets opening in London tomorrow

At the buy target of 57 dollars smds shares are worth over 575p

[moorsie2] 23/5/2024 19:55

A timely help out by Jeffries to raise the IP share price and effectively kill off the ability of Suzano to acquire.

We all benefit however as holders of DSS. I expect this to move sharply now

[alotto] 23/5/2024 19:02

Shackles are off for international paper

[alotto] 23/5/2024 08:59

This is my speculative reasoning: Suzano share price is dropping like a stone. Not a good place to be in the midst of an acquisition. IP edges higher. It bodes well for the merger with SMDS. The market may rerate SMDS to 415p and higher.