Aug 16, 2006. /Lesprom Network/. International Paper announced on August 15 that it is commencing a tender offer to purchase up to approximately 41.7 million shares, or approximately 8.4% of its currently outstanding shares. Under the modified "Dutch Auction" tender offer, the company will repurchase up to $1.5 billion of its common stock at a price that is not less than $32.50 and not greater than $36 per share. The tender offer is scheduled to be completed on September 13, 2006. On July 13, the company announced that its board of directors authorized a share repurchase program to acquire up to $3 billion of the company's stock through the end of 2007 as part of International Paper's transformation plan, launched in 2005. The tender offer announced on August 15 commences the company's share repurchase program. "When we announced our transformation strategy last year, we committed to a balanced and disciplined use of proceeds from divestitures, including returning value to shareowners. We believe this share repurchase, combined with strengthening our balance sheet and strategic reinvestment in our global platform businesses, will generate the best performance for International Paper and provide the strongest returns to its shareowners," said John Faraci, chairman and chief executive officer. This announcement is part of the transformation plan International Paper announced in July 2005 to strengthen the company by: * focusing on two global platform businesses (uncoated papers and packaging, along with xpedx, its merchant distribution business) and improving profitability of those key businesses; * exploring strategic options, including possible sale or spin-off, for certain assets or businesses; and * using proceeds from divestitures to return value to shareowners, strengthen the company's balance sheet, and selectively reinvest in its two global platform businesses. Headquartered in the United States, International Paper has been a leader in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia.