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Tuesday, June 7, 2011

TAKEOVERCHATTER-Advice to IP: Slow poker can be dangerous, (NYSE: IP), (NYSE: TIN), (NYSE: APD), (NYSE: ARG)

In poker, slow playing a strong hand with small early bets can eventually lead to a big payoff. But the strategy can also backfire by giving other players the time to draw superior cards and win the game. International Paper Co (IP.N) should not fall into the "slow poker" trap as it looks to launch a $3.3 billion hostile takeover bid for smaller rival Temple-Inland Inc (TIN.N), bankers and analysts say. Temple-Inland rejected the $30.60-per-share cash bid on Monday, saying it was "grossly" undervalued despite a 46 percent premium. The company also raised antitrust concerns: the combined unit would control around 40 percent of the North American container board market. IP needs to react decisively by sweetening its bid to bring Temple-Inland to the table, experts said, pointing to lengthy takeover battles in the raw materials industry that have not ended well for acquirers, such as Air Products' (APD.N) failed pursuit of rival industrial gas maker Airgas (ARG.N).

International Paper Company (International Paper) is a global paper and packaging company, with markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Shares of IP traded higher by 0.44% or $0.13/share to $29.78. In the past year, the shares have traded as low as $19.33 and as high as $33.01. On average, 5443850 shares of IP exchange hands on a given day and today's volume is recorded at 18394456.

Temple-Inland Inc. manufactures corrugated packaging and building products, which the Company considers as two separate operating segments. Shares of TIN traded higher by 40.36% or $8.48/share to $29.49. In the past year, the shares have traded as low as $15.48 and as high as $26.21. On average, 1272620 shares of TIN exchange hands on a given day and today's volume is recorded at 26005726.

Air Products and Chemicals, Inc. (Air Products) serves technology, energy, industrial, and healthcare customers globally with a of products, services, and solutions that include atmospheric gases, process and specialty gases, performance materials, equipment, and services. Shares of APD traded higher by 1.1% or $0.99/share to $90.6. In the past year, the shares have traded as low as $64.13 and as high as $96.00. On average, 1192020 shares of APD exchange hands on a given day and today's volume is recorded at 1492220.

Airgas, Inc. (Airgas), through its subsidiaries, is a distributor of industrial, medical and specialty gases (delivered in packaged or cylinder form), and hardgoods, such as welding equipment and supplies. Shares of ARG traded higher by 0.87% or $0.57/share to $66.37. In the past year, the shares have traded as low as $60.31 and as high as $71.28. On average, 1045550 shares of ARG exchange hands on a given day and today's volume is recorded at 919708.



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