Corrugated packaging producer Temple-Inland Inc (TIN.N) asked its shareholders 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-Inland's shareholders last week after seeing its friendly, unsolicited bid rebuffed last month. The Temple-Inland board's appeal to shareholders on Monday was widely expected and is just advisory. Shareholders are free to do as they wish, but the board can use a "poison pill," which lets a company increase its total share count at a discount to ward off a potential takeover. Corrugated packaging, used to make shipping boxes, sells for razor-thin profits. If ultimately successful in the buyout, International Paper will be able to consolidate pricing power and extract higher profits for its own shareholders.
Temple-Inland Inc. manufactures corrugated packaging and building products, which the Company considers as two separate operating segments. Shares of TIN fell by 1.56% or $-0.49/share to $30.94. In the past year, the shares have traded as low as $15.48 and as high as $31.58. On average, 2642130 shares of TIN exchange hands on a given day and today's volume is recorded at 2700404.
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 fell by 2.21% or $-0.66/share to $29.21. In the past year, the shares have traded as low as $19.33 and as high as $33.01. On average, 5842900 shares of IP exchange hands on a given day and today's volume is recorded at 2758669.
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