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Int'l Paper to buy Temple-Inland for $3.7 billion
September 6, 2011
MEMPHIS, Tenn. (AP) — International Paper Co. sweetened its bid for Temple-Inland Inc. and its smaller rival agreed to the $3.7 billion buyout offer.
The proposed deal has been approved by the boards of both companies. I-P will also assume $600 million in debt.
Shares of Temple-Inland jumped $6.03, or 24 percent, to $30.66 Tuesday. I-P gained 52 cents, or 2 percent, to $26.01.
I-P is the largest producer of corrugated packaging in North America. Temple-Inland is the third-largest.
I-P, based in Memphis, Tenn., is now offering $32 per share for Temple-Inland, a 30 percent premium to its Friday closing price. This is higher than its previous bid of $30.60 per share in June which its Austin, Texas, target had rejected as too low.
If shareholders approve, the transaction is expected to close in 2012's first quarter.
(Copyright 2011 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
