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International Paper Raises Champion Bid

May 11, 2000|Bloomberg News

International Paper Co. raised its bid for Champion International Corp. by 17% to $9.5 billion, topping a sweetened offer by UPM-Kymmene Oyj and winning support from the Champion board. Champion, which controls about 3% of the North American paper and board market, said it preferred the offer from International Paper to UPM's new all-cash plan worth $9.1 billion. Purchase, N.Y.-based International Paper bid $50 in cash and $25 in stock for each Champion share, and UPM proposed spending $70 in cash. International Paper, the world's largest paper company, made its bid to keep pace in a consolidation race that includes Finland's Stora Enso Oyj and Norway's Norske Skogindustrier. Champion in February agreed to UPM's stock-swap offer, then worth $8.7 billion. That plan is worth $7.9 billion at current prices. On the NYSE, Stamford, Conn.-based Champion jumped $6.06 to close at $72.38, and International Paper fell 44 cents to close at $35.81.

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