Packaging Corporation Of America Ticks Higher; Company Hints Of MLP Conversion - International Paper (NYSE:IP), Packaging Corp of America (NYSE:PKG)

Shares of

Packaging Corporation of AmericaPKG

popped higher on Tuesday morning as the company said during a conference call it has hired legal and financial advisers to explore converting itself to a Master Limited Partnership, or MLP. Packaging Corporation announced its third quarter results on Monday after the closing bell. The company earned $1.26 per share, in-line with the consensus estimates while revenue of $1.52 billion came in $20 million more than analysts expected. The company's move isn't new to the industry.

International PaperIP

said in early September it is considering a conversion to an MLP structure. Analysts at Jefferies

predicted in early October that there is a high likelihood that one of the major containerboard producers would create an MLP structure over the next six to 12 months. Shares of the three major containerboard producers which consists of Packaging Corporation, International Paper and Rock-Tenn RKT all traded higher following Packaging Copration's comments.

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