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DS Smith (BBB-): Shares now at IP bid level

BASIC INDUSTRIES

• Now trading close to ~415bp, the implied International Paper indicative bid level.

• It was reported on Monday that IP may make a firm bid this week.

• Both Mondi and IP have until April 23rd to make a firm bid.

• IP has already detailed expected synergies, while Mondi has been quieter recently.

• SMDSLN spreads have been diverging from Mondi, pricing increasing probability of IP being the successful bidder.

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