International Paper Makes Offer for Champion

International Paper Co., the world’s leading paper maker, is bidding $6.2 billion in cash and stock to acquire rival Champion International Corp., hoping to unseat a competing offer from Finnish paper company UPM-Kymmene. Champion, based in Stamford, Conn., had agreed in February to be acquired by the giant European forestry company, but a subsequent 20% slide in UPM’s share price caused the value of UPM’s all-stock offer to slip from $6.6 billion when it was announced to about $5 billion. International Paper, based in Purchase, N.Y., is offering $43 in cash plus $21 in stock for each share of Champion, valuing the company at $64 a share, well above Champion’s closing value of $51.44 on Monday on the New York Stock Exchange and also above the value of UPM’s offer, which is currently worth about $52.74 per Champion share. As part of the deal, International Paper would also assume about $2.3 billion in debt from Champion. Champion’s stock price jumped 22% after the deal was announced, climbing $12.81 to close at $64.25 on the NYSE. International Paper’s stock fell $2.75 to close at $37.25, and UPM’s American depositary receipts rose $1.38 to close at $27.88, also on the NYSE.