Thursday, March 30, 2006

International Paper (NYSE:IP) Sells Forestland at what Cost?

International Paper (NYSE:IP) has made a big splash announcement about the sale of huge acreages of Forestland to conservation groups. One small sentence refers to a fiber supply agreement. Additional information has not been provided as to the nature and details of the agreement. The PR optics are good. But is this true conservation? What impact does the shareholder accrue from a fiber supply agreement? The devil is in details! The details are behind closed doors. IP sourced cash but probably has to pay to get the wood back. What are the real economics? Are Gods creatures truly safer today?