The market seems smitten with the newfound pricing power in the industry, but it won't last.
We expect to raise our fair value estimates but don't anticipate changing either company's no-moat rating following news of the deal.
Smurfit-Stone is benefiting from recent strength in corrugated markets.
Western Asset manager Ryan Brist expects a lot of risk in the corporates market in 2013-14, as banks pare risky lending practices and opportunities to enter or exit the bond market shrink.
Smurfit-Stone is working through its cost-reduction program with modest results.