DS Smith PLC (LSE:SMDS) shares jumped almost 10% and those in International Paper Co (NYSE:IP, ETR:INP) fell 11% after news filtered through that suggests the takeover of the UK box-maker will go ahead.
Brazilian pulp maker Suzano said it had ended talks to buy IP as the US paper and packaging group had not been interested in the highest price it was willing to pay.
IP shares fell over 11% in pre-market trading to $41.43, while SMDS was up 9.7% to 404.2p by the early afternoon.
Suzano said it had raised its offer to "the maximum price" for the transaction to generate value, but this had been "without engagement from the other party".
"Therefore, in observance of its commitment to capital discipline, Suzano formalizes that it will not pursue a transaction involving the acquisition of International Paper," it said.
DS Smith agreed to a takeover by IP for £5.8 billion in April but the Suzano bid had put this deal in doubt.
Earlier this week the boards of IP and SMDS announced the expiration of the waiting period under the Hart-Scott-Rodino Act for the combination.
They said completion of the deal remains subject to regulatory clearance being received from the European Commission and the sanctioning of the court scheme, which they expect to become effective in the fourth quarter.