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Actually, another thing to take into account is that Intl. Paper, although its recent return-on-equity no. is decent (>20%) its return on capital is not great (5%) and according to a cursory analysis I just saw, it may be over-valued by as much as 40% based on discounted cashflow method of valuation. Therefore, it would be in its interests to use as much of its equity to pay for SKG as possible if it is that much over-valued. If correct, the share component should only be valued at 60% which brings the effective offer per share down to around €32.33. Maybe that is why SKG are so insistent that it is indeed, opportunistic...
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