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Talk of a possible business combination or acquisition between Domtar and Canada’s Paper Excellence has prompted a response from Domtar.
News of a potential $3 billion deal was first reported Monday by Bloomberg.
A company statement reads, “Domtar has been made aware of press speculation regarding discussions between the Corporation and Paper Excellence.”
It goes on to say, “Domtar acknowledges that its management has been in discussion with Paper Excellence about such a potential transaction. However, these talks may or may not result in an agreement.”
Officials say the company won’t comment further unless or until there is a transaction to announce.
Domtar shares have soared since word came out in the media about a possible deal.
They closed at $59.51 Canadian Wednesday, up from $49.70 Monday.
Paper Excellence, based in Richmond, British Columbia, makes pulp packaging and specialty paper, and owns about a 49% stake in a Brazilian mill.
