Investing.com -- Shares of Clearwater Paper Corp . (NYSE:CLW) surged 15% following reports that Brazil's Suzano SA is considering a takeover bid for the company. According to Bloomberg, Suzano is working with an adviser to potentially reach an agreement, though the deal has not been finalized and may not come to fruition.
Clearwater Paper, a Spokane, Washington-based manufacturer of pulp and paperboard products, has seen its market value drop by 31.6% this year prior to the surge. The company's market capitalization stood at $409 million as of the last close before the news broke. The potential acquisition comes as Suzano, the largest supplier of hardwood market pulp in North America, seeks to expand its presence in the U.S. market. Suzano has recently acquired two paperboard mills in Arkansas and North Carolina in a transaction valued at $110 million.
The news of the possible takeover sent Clearwater's stock climbing in after-hours trading on Thursday, with an increase of as much as 19%. However, both Suzano and Clearwater have declined to comment on the matter. The discussions are said to be confidential, and there is no certainty that the acquisition will be agreed upon.
Investors reacted to the news by buying up shares in anticipation of a potential deal, which would likely offer a premium over the current market valuation of Clearwater Paper. The company's stock movement today reflects investor optimism about the prospects of a takeover, which could provide a significant boost to Clearwater's business and potentially offer synergies with Suzano's existing operations.
As the market awaits further developments, the stock's performance will likely continue to be influenced by any new information regarding the potential acquisition. The situation remains dynamic, and investors are advised to monitor the news for any official announcements or updates on the negotiations between Suzano and Clearwater Paper.
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