International Paper Going Hostile for Temple-Inland

“MEMPHIS, Tenn., June 6, 2011 /PRNewswire/ — International Paper (NYSE:IP – News) today announced that it has proposed to acquire all of the outstanding shares of Temple-Inland (NYSE:TIN –News) for $30.60 per share in cash.  Under the terms of the proposal, the offer represents a 44% premium to Temple-Inland’s price as of noon EDT, June 6th, 2011 ($21.21). International Paper’s offer, which is backed by committed financing from UBS Investment Bank, is contingent on appropriate documentation and regulatory approval, which International Paper believes can be obtained.

(Logo: http://photos.prnewswire.com/prnh/20020701/IPLOGO )

International Paper first communicated its proposal verbally to the chairman of Temple-Inland on May 17th, 2011.  Subsequently, there has been a call, a face-to-face meeting between the two sides and two letters of correspondence from the chairman of International Paper to the chairman of Temple-Inland. International Paper was informed in a letter from Temple-Inland’s chairman dated June 4, 2011 that the Board of Temple-Inland has unanimously rejected International Paper’s proposal. In response, International Paper today sent a letter to Temple-Inland expressing its continued interest in pursuing an acquisition (the full text of that letter is below).”

Full article