Shares of International Paper climbed 8% following reports that firms including Lone Star and Atlas Holdings are exploring bids for the unit. While the company continues to prepare for the spinoff—an initiative originally announced in January to create two independent entities—it is now evaluating whether a direct sale offers a more favorable outcome. The EMEA business, which integrates assets acquired in the $7.2 billion purchase of DS Smith, remains a focal point for the company's restructuring efforts.

Management emphasized that no final decisions have been reached regarding the timing or structure of the separation. The pivot comes amid persistent headwinds, as the company contends with cooling consumer spending and a sluggish housing market that have hampered demand for corrugated packaging. Having missed second-quarter sales targets earlier this year, International Paper is under pressure to optimize its portfolio while maintaining its position as a dominant force in the North American packaging sector.