DAVY VIEW

Yesterday (March 26th), post UK market close, US packaging leader International Paper (IP) made an indicative 415p offer for DS Smith (0.1285 IP shares for each DS Smith share). Noting that IP shares fell 6.49% yesterday, its indicative DS Smith offer is currently worth c.389p/share. On March 7th, Mondi made an indicative 373p offer for DS Smith (0.27 Mondi shares for each DS Smith share). Mondi’s indicative DS Smith offer is currently worth c.377p/share. Mondi has until 17:00 on Thursday April 4th to make a firm DS Smith offer or walk away (‘put up or shut up’ deadline). With two potential suitors, we advise DS Smith shareholders to await developments, reaffirming our DS Smith ‘Outperform’ view and 400p price target.