A lawsuit alleging Temple-Inland Inc (TIN.N) helped fuel the collapse of Guaranty Bank in 2009 sent shares of the packaging producer down more than 18 percent on Tuesday, spooking investors betting on International Paper's (IP.N) hostile takeover offer. The lawsuit, filed by a liquidation trustee for the failed bank, claims Temple-Inland caused the bank's failure by "fraudulently looting" assets worth more than $1 billion. The lawsuit further alleges that Guaranty did not operate like a traditional bank, but a "captive finance arm" of Temple-Inland that boosted demand for the company's building materials division. Under the weight of mortgage-backed securities, Guaranty filed for bankruptcy protection in 2009 after U.S. regulators seized its core banking unit and sold it to a Spanish firm.
Temple-Inland Inc. manufactures corrugated packaging and building products, which the Company considers as two separate operating segments. Shares of TIN fell by 18.21% or $-4.52/share to $20.30. In the past year, the shares have traded as low as $15.48 and as high as $31.58. On average, 3204380 shares of TIN exchange hands on a given day and today's volume is recorded at 11063606.
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 3.72% or $0.87/share to $24.26. In the past year, the shares have traded as low as $19.33 and as high as $33.01. On average, 6487500 shares of IP exchange hands on a given day and today's volume is recorded at 3002401.
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