Corrugated packaging producer Temple-Inland Inc (TIN.N) advised its shareholders on Monday to reject a $3.3 billion hostile takeover offer from International Paper Co (IP.N), saying the bid undervalues its assets. IP took its $30.60-per-share offer directly to Temple's shareholders last week after the company rebuffed its friendly, unsolicited offer last month. Monday's widely expected move by Temple-Inland's board is just advisory. Shareholders of Temple-Inland are free to do as they wish, but its board can use a "poison pill," which lets a company increase its total share count at a discount to ward off a potential takeover.
Shares of IP traded higher by 29.48% or $2.4314/share to $505545152.00. In the past year, the shares have traded as low as $2.63 and as high as $19.33. On average, 1107561021 shares of IP exchange hands on a given day and today's volume is recorded at 5694840.
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