International Paper has scrapped plans for an €8.9bn takeover offer for Dublin-headquartered packaging giant Smurfit Kappa, blaming a lack of engagement from its board.

Shareholders should stick with Smurfit Kappa because there is still a 50:50 chance US rival International Paper would again raise its bid closer to €40 a share after Smurfit posted a strong start to the year, said Darren McKinley, a senior equity analyst at Merrion.