International Paper Begins Buyback

International Paper(IP Quote - Cramer on IP - Stock Picks) said Tuesday it is tendering for up to 41.7 million shares.

The buyback amounts to about 8.4% of the company's outstanding shares.

Under the modified Dutch auction self-tender, the company will repurchase up to $1.5 billion of its common stock at a price between $32.50 and $36 a share. International Paper said it would begin the buyback on Aug. 16, and repurchase a significant amount of shares by Sept. 13.

The company said it might purchase up to an additional 2% of its outstanding shares or about 9.9 million shares without extending the offer.

On July 13, International Paper's board authorized a share repurchase program to acquire up to $3 billion of the company's stock through the end of 2007 as part of the company's transformation plan.

Shares rose 63 cents to $34.89.