<B>International Paper raises Champion</B>

International Paper increased its offer for Champion International by 17% to $9.5 billion, topping a sweetened bid by UPM-Kymmene Oyj and winning support from the Champion board. Champion, which controls about 3% of the North American paper and board market, said it preferred the offer from International Paper to UPM's new all-cash offer worth $9.1 billion. International Paper offered $50 in cash and $25 in stock for each Champion share, while the Helsinki-based UPM offered $70 in cash. The two papermakers are fighting for Champion, with UPM looking to expand in the world's largest economy because regulatory hurdles curtail its prospects in Europe. International Paper, the world's largest paper company, is trying to defend against proposed acquisitions by UPM and Stora Enso Oyj. Both companies raised their bids for Champion, which in February already agreed to UPM's stock-swap offer, then worth $8.7 billion. That offer is worth $7.9 billion at current prices.