What Happened?
Shares of packaging and materials company International Paper (NYSE: IP) jumped 6.7% in the afternoon session after the company confirmed early-stage discussions with potential suitors following unsolicited interest in its EMEA Packaging Business.
The company acknowledged movements in its share price and stated that discussions are continuing alongside ongoing spin-off plans. Financial Times reported that Lone Star and Atlas Holdings are evaluating multibillion-dollar buyout proposals for International Paper's European packaging operations that could value the unit at less than $6 billion. According to the report, the private equity interest endangers a London float of the former DS Smith business.
The shares closed the day at $34.05, up 6.3% from the previous close.
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What Is The Market Telling Us
International Paper’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 10.7% on the news that the company reported disappointing third-quarter 2025 results that missed analyst expectations on both revenue and profit. The packaging firm announced revenue of $6.22 billion, falling short of the $6.48 billion consensus forecast. More significantly, International Paper posted an adjusted loss of $0.43 per share, a stark reversal from the $0.56 per share profit that analysts had predicted.
The company's profitability took a major hit, with its operating margin swinging to a negative 10.8% from a positive 3.7% in the same quarter last year. This decline was driven by operating expenses growing faster than revenue, signaling a lack of cost control and leading to the sharp investor sell-off.
International Paper is down 15.3% since the beginning of the year, and at $34.09 per share, it is trading 30.7% below its 52-week high of $49.19 from February 2026. Investors who bought $1,000 worth of International Paper’s shares 5 years ago would now be looking at only $639.73.
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