DS Smith rallies as Suzano abandons pursuit of International Paper

DS Smith was the top gainer on the FTSE 100 on Thursday after Brazilian pulp maker Suzano said it had ended talks to buy International Paper.

In a statement on Wednesday, Suzano said that IP had not engaged with the highest price it was willing to pay.

Suzano said it had reached what it believes to be "the maximum price" for the transaction to generate value for it "without engagement from the other party".

"Therefore, in observance of its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper," it said.

DS Smith agreed to be bought by International Paper in April for £5.8bn. According to Reuters, a deal between Suzano and IP would have been conditional on IP abandoning its DS Smith bid.

At 1000 BST, DS Smith shares were up 5.8% at 389.69p.