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International Paper sweetens bid, agrees to buy rival Temple-Inland for about $3.7 billion
MEMPHIS, Tenn. (AP) ' International Paper Co. sweetened its bid for Temple-Inland Inc. and its smaller rival agreed to the $3.7 billion buyout offer.
The proposed deal has been approved by the boards of both companies. I-P will also assume $600 million in debt.
Shares of Temple-Inland jumped $6.03, or 24 percent, to $30.66 Tuesday. I-P gained 52 cents, or 2 percent, to $26.01.
I-P is the largest producer of corrugated packaging in North America. Temple-Inland is the third-largest.
I-P, based in Memphis, Tenn., is now offering $32 per share for Temple-Inland, a 30 percent premium to its Friday closing price. This is higher than its previous bid of $30.60 per share in June which its Austin, Texas, target had rejected as too low.
If shareholders approve, the transaction is expected to close in 2012's first quarter.