Paper Outlook — Another Notch in the Market's Belt

"We were not surprised by International Paper's bid for Champion," remarks Tom Hayes, vice president of marketing and sales for R.R. Donnelley Paper Services. "When StoraEnso paid a higher market premium for Consolidated than what UPM was paying for Champion, it was almost a fait accompli."

International Paper's offer exceeds UPM-Kymmene's February move to acquire Champion. Based in Finland, UPM's all-stock offer of $6.6 billion dropped to about $5 billion after a 20-percent slide in UPM's share price. In the end, UPM-Kymmene chose not to submit a counter offer. International Paper hopes to close the deal in June.