DS Smith Jumps After US Talks Raise Prospect of Bidding War (2)

DS Smith Plc climbed after it confirmed talks with US rival International Paper Co., triggering a possible bidding war for the UK packaging company.

International Paper is considering an all-share offer worth £4.15 per share, valuing DS Smith at £5.7 billion ($7.2 billion). Earlier this month, Mondi Plc reached an in-principle agreement to buy its UK rival for £5.1 billion.

DS Smith shares rose more than 7% in early trading on Wednesday after confirming the talks, while International Paper fell as much as 6.5% Tuesday in New York.

Paper reels at the DS Smith Plc facility in Kemsley, UK.

Photographer: Jason Alden/DS Smith

The paper and packaging sector has been consolidating, with Smurfit ...