BUZZ-International Paper down after Smurfit rejection, BMO downgrade

** Shares (Berlin: DI6.BE - news) of International Paper Co dropped more than 4 pct early Weds following Smurfit Kappa (Frankfurt: SK3.F - news) 's takeover rejection, as well as BMO downgrade to "market perform" from "outperform"

** Broker cuts PT on International Paper shares to $65 from $70; IP currently down 3.5 pct at $55.67

** Late Tues, Irish paper co Smurfit Kappa Group rejected IP's "unsolicited and highly opportunistic" $10 bln bid to buy the co

** However, lead BMO analyst Mark Wilde calls the acquisition "likely," views deal as opportunity for IP to gain leading positions in Europe and LatAm

** But Wilde sees corporate culture clash, post-deal capex ramp-up as areas of concern

** Initial news of the takeover bid sent SKG shares to record high

** On Feb 1, IP reported Q4 adj EPS of $1.27, beating the $1.19 analysts expected, per Thomson Reuters (Dusseldorf: TOC.DU - news) data; Co has beaten or met Street estimates in all but 1 of the last 8 qtrs

** Of 15 analysts covering IP, 7 rate co "buy" or stronger, 7 recommend "hold" and 1 "sell"; median PT $67

** Wilde earns 2 of 5 stars from Thomson Reuters StarMine for past IP recommendation performance

** Over the last 12 months, IP stock has gained ~7.5 pct, underperforming the >16 pct advance seen by the S&P 500 Containers and Packaging index over the same period (Reporting by Stephen Culp)