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DS Smith (BBB-): Bidding War

BASIC INDUSTRIES

Negative for SMDSLN spreads. IP is lower rated than MNDILN and trades wider.


• DS Smith has confirmed talks with International Paper on a bid representing 415p/share.

• Earlier this month Mondi reached an agreement in principle to buy DS Smith for an implied 373p/share based on Mondi’s share price.

• MNDILN is rated Baa1 while IP is rated Baa2/BBB.

• Next event to watch will be Mondi’s response, who may come back with an improved bid.

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