SAO PAULO, June 26 (Reuters) - Brazilian pulpmaker

Suzano said on Wednesday it has terminated talks to

buy International Paper ( IP ), adding the U.S.-based firm did

not engage with the highest price it was willing to pay.

Suzano, the world's largest pulp manufacturer, said last

month it was interested in assets owned by International Paper ( IP ),

after Reuters reported the Brazilian company had approached the

U.S. firm to express interest verbally in an all-cash

acquisition worth $15 billion.

In Wednesday's filing, Suzano said "it has reached what it

believes to be the maximum price for the transaction to generate

value" for itself, "without engagement from the other party."

"Therefore, in observance of its commitment to capital

discipline, Suzano formalizes that it will not pursue a

transaction involving the acquisition of International Paper ( IP ),"

Suzano said.

International Paper ( IP ) did not immediately respond to request

for comment outside normal business hours.

Reuters reported in May that Suzano had been in talks with

advisers about sweetening an offer for International Paper ( IP ).

A deal between the companies would be conditioned on

International Paper ( IP ) abandoning its recently announced agreement

to acquire British packaging firm DS Smith ( DITHF ) for $7.2

billion, sources previously told Reuters.

Shares from Suzano are down 14.6% since the day before news

of the talks broke until Wednesday's closing, while

International Paper ( IP ) shares are up 26.2% in the same period.