SAO PAULO (From news reports) - Brazilian pulpmaker Suzano will maintain its capital discipline and would not make any move solely aimed at growing, as it is focused on adding value for shareholders, Chief Executive Walter Schalka said on Friday.
WHY IT'S IMPORTANT
Reuters reported earlier this week, citing sources familiar with the matter, that Suzano had approached U.S.-based International Paper to express interest in an all-cash acquisition that would be worth almost $15 billion.
In statements, Suzano - the world's largest pulp manufacturer - said no decision about a potential deal had been made by its management. International Paper declined to comment.
MARKET REACTION
Sao Paulo-traded shares of Suzano fell 12.3% following the Reuters report on Tuesday, with analysts mentioning they were surprised by the size of the potential deal and limited immediate synergies.
Suzano shares were down 1.3% on Friday after the company reported a 96% decline in its first-quarter net profit.
KEY QUOTES
In an earnings call with analysts, Schalka avoided commenting about a potential deal with International Paper, but said Suzano's management "will not do anything that could put the company at risk".
"I did not understand the market's reaction," said Schalka, who will leave the CEO role in July. "We will not do any move just to grow."
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