International Paper Co (IP.N) sealed a $3.7 billion deal to purchase rival Temple Inland Inc (TIN.N) by raising its offer 5 percent, cementing its position as the leader of the North American corrugated packaging market. The deal, which is expected to close by the end of 2012, came together after a Labor Day weekend meeting between IP Chief Executive John Faraci and Temple counterpart Doyle Simons. Simons opened Temple's books to Faraci -- something he had refused to do since the IP offer was made public in June and IP went hostile in July. IP initially offered $30.60 per share, an amount that Temple had repeatedly said was too low.
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 4.08% or $1.04/share to $26.53. 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 7698150.
Temple-Inland Inc. manufactures corrugated packaging and building products, which the Company considers as two separate operating segments. Shares of TIN traded higher by 25.05% or $6.17/share to $30.80. 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 37248852.
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