International Paper tables formal offer
Rival suitor Mondi declines to comment
Shares in DS Smith down 2

April 16 Reuters International Paper on Tuesday agreed to an allshare deal to buy DS Smith, valuing the British packaging firm at 5.8 billion pounds 7.2 billion and edging out a bid by Mondi.

DS Smith said it had recently received proposals from both International Paper and Mondi, but the U.S. company was now in a position to make a firm offer.

The two suitors earlier had an April 23 deadline to make a firm offer or walk away. Mondi declined to comment on the deal.

Shares in DS Smith, which have gained about 46 since Mondi first made its interest known in early February, fell as much as 4, before paring losses to be down 2 by 0734 GMT.

DS Smith said on Tuesday revenue in the year to date has declined, mainly due to lower volumes and a fall in packaging and paper prices.

U.S. firm International Paper entered the fray late last month with a higher counterbid as it sought to expand its European presence at a time of consolidation in the sector.

Late last year, Ireland39;s Smurfit Kappa agreed to buy U.S. rival WestRock in an 11 billion deal which is expected to close in July.

Upon completion of the combination, DS Smith shareholders would own about 33.7 and International Paper shareholders will own the rest of the combined company, which plans to seek a secondary listing in London.

DS Smith said it would recommend shareholders back the deal with International…