International Paper stock surges 7% as PE firms weigh bids for European packaging unit

International Paper shares climbed roughly 7% on October 15 after the Financial Times reported that private equity firms, including Lone Star and Atlas Holdings, are exploring acquisition offers for the company's European packaging business, the division formerly known as DS Smith. The development throws into doubt International Paper's previously announced plan to float the unit on the London Stock Exchange.

International Paper confirmed it is evaluating bids for the EMEA packaging unit, signaling that a sale to a private buyer has become a live alternative to the planned London listing. The company acquired DS Smith in 2024 and had been preparing a London float of the European business as its primary exit route. Unusual options activity was also noted during the session, including elevated call volume in the November 35 strike.