7 June, 2011
International Paper announced that it has proposed to acquire all of the outstanding shares of Temple-Inland for $30.60 per share in cash. Under the terms of the proposal, the offer represents a 44% premium to Temple-Inland’s price.
International Paper chairman and CEO John Faraci said, “We are very disappointed with the response of Temple-Inland’s Board of Directors. We believe that our proposal offers clearly superior and compelling value to Temple-Inland’s shareholders. Our proposal reflects the future business plans and economic outlook for Temple-Inland and for the sector, and incorporates a significant portion of the cost savings resulting from the merger of International Paper and Temple-Inland, while at the same time creating value for International Paper shareholders.”
The offer reflects the potential cyclical improvement in Temple-Inland’s building products segment and International Paper’s willingness to share a portion of the significant synergies available from the transaction with Temple-Inland shareholders. International Paper is prepared to consider all alternatives to successfully complete this transaction.