International Paper bids for Temple-Inland

Packaging and building materials maker Temple-Inland is rejecting a $3.3 billion unsolicited takeover bid from larger rival International Paper Co., saying the offer is too low and would face heavy regulatory scrutiny.

Memphis-based International Paper proposed a bid of $30.60 per share _ or around $3.3 billion _ for all outstanding shares of Austin, Texas-based Temple-Inland. That represents a premium of about 45 percent over Temple-Inland's closing stock price of $21.01 on Monday. Temple-Inland's shares have traded as high as $26.21 in the past year.

Temple-Inland said the bid undervalues its business. Temple-Inland said International Paper is acting now because Temple-Inland's building materials business has weakened in the economic downturn. Temple-Inland makes particleboard, gypsum board and other building materials.

Temple-Inland added that the deal would likely be scrutinized by federal anti-trust regulators. Temple-Inland currently controls around 12 percent of the North American market for corrugated packaging materials. A combined company would control around 40 percent of that market, Temple-Inland said.

"As the economic recovery continues and the benefits from our strategy continue to be realized, it is the stockholders of Temple-Inland who should gain from those anticipated benefits, not the stockholders of IP," Temple-Inland Chairman and CEO Doyle Simons said in a statement.

International Paper said it first proposed a merger verbally on May 17. On Saturday, Temple-Inland informed International Paper that its board had unanimously rejected the deal.

"We believe that our proposal offers clearly superior and compelling value to Temple-Inland's shareholders," International Paper Chairman and CEO John Faraci said in a statement. "Our proposal reflects the future business plans and economic outlook for Temple-Inland and for the sector, and incorporates a significant portion of the cost savings resulting from the merger of International Paper and Temple-Inland, while at the same time creating value for International Paper shareholders."

International Paper has more than 60,000 employees worldwide. It reported revenues of $25 billion in 2010. Temple-Inland has around 10,500 employees and reported revenues of $3.8 billion last year.

Temple-Inland shares rose 43 percent, or $9.04, to $30.05 in after-hours trading. International Paper shares rose $1.10, or 3.7 percent to $30.75.

Daily Dose Self-Administered: June 6, 2011 Wknd Wrap Up & Big News

This is my 3rd blog, the 1st was Daily Dose, the 2nd was Daily Dose RE-Administered and this is a new blog – a video blog, called Daily Dose Self-Administered. Beginning September 16, 2010 (my 5 yr anniversary of leaving the work force to support my hubby while he went back to school full-time) I will begin my journey of documenting my physical activity (you won't have to watch me exercise, I'm just going to tell you what I've done!) I have accomplished many of my own goals since leaving the work force, the biggee was STOP SMOKING, but with it came the dreaded weight gain. I am blogging for accountability – this is my yr of movement. I want to log on, each day, and tape a short video to the universe on how I have physically MOVED that day. I am excited! My Mom walked a mile a day right up until, oh probably 6 weeks before she passed away. She taught me how to care for myself and on what would have been her 91st birthday, August 14, 2010 - I decided to honor her teachings and begin a video blog. I hope you can join me, and if so, thanks for keeping me accountable! By the way, going “video” was an inspiration from a friend that does a daily “photo” blog - thanks Sheila!

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