PRIVATE EQUITY CIRCLES INTERNATIONAL PAPER'S EUROPE UNIT

International Paper confirmed it is in talks with private equity firms over its EMEA packaging business, sending the stock up about 7% on the New York Stock Exchange. Buyout shops Lone Star and Atlas Holdings are circling the unit with bids reportedly valuing it at under $6 billion, well below the $7.2 billion International Paper paid to build out that European footprint through its DS Smith acquisition. The company said the sale process remains at an early stage with no certainty a deal gets done, and it's still weighing a separate spin-off of the same business announced in January. $IP shares reacted as investors priced in a clean cash exit over a messier split.