International Paper Co (IP.N) sealed a deal to purchase rival Temple Inland Inc (TIN.N) after raising its offer 5 percent, cementing its position as the leader of the North American corrugated packaging market. IP raised its bid to $32 per share, roughly $3.7 billion. The company said on Tuesday it will also assume roughly $600 million of Temple's debt. The final deal saves both sides from a prolonged tussle and rewards Temple shareholders with a price the shares hadn't hit since 2007. Temple makes corrugated packaging, which is used to make shipping boxes. When the deal closes, International Paper will be able to consolidate pricing power in the box industry and extract higher profits for its own shareholders.
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 1.73% or $0.44/share to $25.93. In the past year, the shares have traded as low as $20.77 and as high as $33.01. On average, 6489370 shares of IP exchange hands on a given day and today's volume is recorded at 4505314.
Temple-Inland Inc. manufactures corrugated packaging and building products, which the Company considers as two separate operating segments. Shares of TIN traded higher by 25.33% or $6.24/share to $30.87. In the past year, the shares have traded as low as $17.91 and as high as $31.58. On average, 3574300 shares of TIN exchange hands on a given day and today's volume is recorded at 26329628.
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