DS Smith PLC (LSE:SMDS) fell over 9% on Friday after Mondi said it had abandoned its proposed takeover of the paper firm.
“Following a period of due diligence, and after carefully considering the value the combination with DS Smith would deliver to Mondi's shareholders, the board has decided that the transaction would not be in the best interests of its shareholders,” Mondi announced.
“Accordingly, Mondi does not intend to make an offer for DS Smith.”
Mondi shares jumped over 11% after the announcement.
Mondi said the move followed DS Smith's acceptance of an all-share deal from US group International Paper Co (NYSE:IP, ETR:INP) earlier this week.
Talks were still ongoing between DS Smith and Mondi as of late as last week when Memphis-based International Paper tabled a knock-out £5.8 billion offer.