International Paper shares are trading higher after reports suggesting that private equity firms Lone Star and Atlas Holdings are preparing separate offers for the company's European packaging business.

Why International Paper Rallied Today

International Paper stock rallied 7.6% on reports that two private equity firms may bid for its European business (DS Smith). The potential sale, estimated at less than $6 billion—a 40% loss from the $9.9 billion purchase price in 2024—would help reduce the company's $8.5 billion net debt burden. However, the struggling North American segment shows declining revenue and operating income, suggesting the rally may be temporary relief rather than a sign of fundamental improvement.

International Paper Weighs Sale Of EMEA Packaging Business Alongside Planned Spin-Off That Was Expected To Be Effected Through A Listing Of The Business On The LSE With A Level II ADR Program To Be Listed On The NYSE

'Lone Star And Atlas Holdings Are Both Working On Possible Deals For For International Paper’s European Packaging Business' - Financial Times