It is reported that Suzano SA(SUZ.US) has terminated the acquisition of International Paper(IP.US), and the latter has refused Suzano's acquisition proposal and supports its merger plan with another competitor. International Paper stated on Wednesday that Suzano has been unable to get it involved in the acquisition seriously, and has been unwilling to further increase the quote. International Paper fell more than 15% in pre-market trading on Thursday. Suzano's stock price soared nearly 12% after Wednesdays trading.

Suzano stated:"Suzano has always had one condition for completing this transaction, which is that the contact between the two parties must be based on a private, confidential and friendly basis. As it is not possible to proceed in this way, Suzano has decided to terminate negotiations."

This decision eliminates a complicated factor in International Paper's acquisition of DS Smith Plc plan. The two companies said on Tuesday that the deal is expected to be completed in the fourth quarter. Prior to this, market rumors stated that Suzano will acquire International Paper at a price of $42 per share. Suzano's potential acquisition condition is that International Paper abandon the transaction to acquire British packaging company DS Smith. International Paper announced on April 16 that it has agreed to acquire the British paper and packaging company DS Smith in full shares, valuing it at 5.8 billion pounds (7.2 billion US dollars).

Acquisition of International Paper would enable Suzano, the world's largest pulp producer, to expand internationally and diversify its business into more stable packaging industries. Insiders previously revealed that Suzano saw room to take on a large amount of debt when considering this transaction. Investors have reacted negatively to the possible acquisition, raising doubts about whether Suzano will be able to maintain its investment-grade rating if it takes on more debt.

Suzano did not provide details on the highest quote. International Paper refused the initial quote of $42 per share, which would have valued the company at nearly $15 billion. Insiders said the company may reject any offer below $50 per share or a total of $17.3 billion.