Proactive Investors - It has been a rollercoaster year in the tumultuous world of paper and packing product solutions, what with the ménage à trois between three of the largest paper barons globally, namely Britain’s DS Smith PLC (LON:SMDS), Brazil’s Suzano and America’s International Paper.
To catch you up to speed, International Paper tabled a £5.8 billion bid for London-listed DS Smith, which effectively shouldered former bidder Mondi (LON:MNDI) out of the equation, only for Suzano to swoop in with a bid for International Paper, thus throwing the IP-DS marriage into doubt.
Suzano, however, abandoned its International Paper bid in June when it refused to stump up an enticing enough price to seal the deal.
That left the door wide open for International Paper to close in on DS Smith, with DS Smith recommending the deal to shareholders a few days ago.
So there are no prizes for guessing what will be on the agenda when DS Smith delivers its first-quarter trading update on Tuesday, 3 September.
DS Smith cited a “robust performance in a challenging environment” when it reported full-year results in June.
The group was light on forward guidance, apart from acknowledging that higher input costs are expected to drive packaging prices up in the second half of the current financial year.
What will be of greater interest is DS Smith’s post-merger plans.
International Paper promised to keep a London office and a secondary listing on the London Stock Exchange if and when the takeover finally closes.
While quarterly updates are typically light on these sorts of big-picture issues, investors will be keeping a close eye on any tidbits of information.
DS SMith shares have been on a rip since the bidding war began, with the stock up 54% year to date.