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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

DS Smith tumbles as Mondi abandons pursuit

(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper. Earlier this week, US firm International Paper agreed to buy DS Smith for $5.8bn in an all-share deal.

The news followed an agreement in principle last month for Mondi to buy DS Smith in a £5.1bn all-share deal.

"Following a period of due diligence, and after carefully considering the value the combination with DS Smith would deliver to Mondi's shareholders, the Mondi board has decided that the transaction would not be in the best interests of its shareholders," it said on Friday.

"Accordingly, Mondi does not intend to make an offer for DS Smith."

At 1215 BST, DS Smith shares were down 10.6% at 357.40p, while Mondi shares were 8.5% firmer at 1,493.05p.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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