Rival makes hostile play for Temple-Inland

Memphis' International Paper Co. Monday announced a tender for all outstanding common stock of Temple-Inland, a deal worth $3.3 billion. The offer of $30.60 per share represents a 46 percent premium to the June 6 price for Temple-Inland, based in Austin, Texas, and will be in effect until Aug. 9. John Faraci, chairman and chief executive officer of International Paper, said the offer was pretty attractive since his team figured Temple-Inland was worth $21-$24 per share. "The premium we are offering is substantial, the multiple is well above recent directly comparable transactions, and we are providing Temple-Inland shareholders the certainty of cash in the midst of a very uncertain economic environment," he said in a written statement. Temple-Inland is a rival of International Paper in the corrugated cardboard business, which is a mainstay of packaging. Temple-Inland rejected a friendlier buyout offer last month. "We believe Temple-Inland's price expectations are unrealistic and their unwillingness to engage in any meaningful discussions with respect to value has left us with no alternative but to make our offer directly to Temple-Inland shareholders," Faraci said.