Temple-Inland Stock Soars on IP Takeover Offer

Shares of Temple-Inland, Inc. (NYSE:TIN) are up over 40% today on news that International Paper (NYSE:IP) has offered to buy the company for $30 per share.

Some information about these two companies:

  • Temple-Inland, Inc.: Its shares have traded in a 52-week range of $15.48 to $29.97 and most recently traded at $29.58.  Its market capitalization is $3.2 billion, its trailing price-to-earnings ratio is 17.3, its earned $1.71, and it paid a dividend of $0.52 per share last year.  About the company: Temple-Inland, Inc. manufactures paper, corrugated packaging, and building products.  Temple-Inland’s products include linerboard, lumber, particleboard, and fiberboard.
  • International Paper, Inc.: Its shares have traded in a 52-week range of $19.33 to $33.01 and most recently traded at $30.06.  Its market capitalization is $13.15 billion, its trailing price-to-earnings ratio is 11.43, it earned $2.63 per share last year, and it pays a dividend of $1.05 per share.  About the company: International Paper Company produces and distributes printing paper, packaging, forest products, and chemical products.  The Company operates specialty businesses in global markets as well as a broadly based distribution network.  International Paper exports its products worldwide. Competitors to Watch: Clearwater Paper Corp (NYSE:CLW), P.H. Glatfelter Company (NYSE:GLT), Wausau Paper Corp. (NYSE:WPP), MeadWestvaco Corp. (NYSE:MWV), KapStone Paper and Packaging Corp. (NYSE:KS), Boise Inc. (NYSE:BZ), Buckeye Technologies Inc. (NYSE:BKI), Fibria Celulose S.A. (NYSE:FBR), and Domtar Corp. (NYSE:UFS).

Other competitors whose shares may benefit from consolidation or speculation:

  • Boise Inc. (NYSE:BZ):  About the company: Boise, Inc. manufactures paper and packaging. The Company produces copy, commercial printing, newsprint, premium and specialty papers, and market pulp; and corrugated containers and containerboard.
  • Packaging Corp. of America (NYSE:PKG): About the company:  Packaging Corp of America manufactures containerboard and corrugated packaging products for use in protecting goods during shipment. The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.
  • KapStone Paper and Packaging (NYSE:KS): About the company: KapStone Paper and Packaging Corporation manufactures unbleached kraft paper and dunnage bags.
  • Rock-Tenn Company (NYSE:RKT):  About the company: Rock-Tenn Company manufactures packaging, including folding cartons, as well as recycled paperboard, and specialty corrugated packaging and display products. The Company has manufacturing operations throughout the United States, Canada, and Mexico.
  • MOD-PAC Corp. (NASDAQ:MPAC):  About the company: Mod-Pac Corporation designs, manufactures, and markets specialty packaging for consumer products and industrial manufacturers worldwide. The Company offers stock and custom folding cartons and presentation products to customers in the healthcare, pharmaceuticals, automotive, confectionary, and other industries.
  • Clearwater Paper Corp. (NYSE:CLW):  About the company: Clearwater Paper Corp. manufactures consumer tissue, bleached paperboard, and wood products. The Company supplies private label tissue to major retail grocery chains and produces bleached paperboard that is used by printers and packaging converters.
  • MeadWestvaco Corp. (NYSE:MWV):  About the company: MeadWestvaco Corporation is a global packaging company that provides packaging solutions to the healthcare, personal and beauty care, food, beverage, tobacco, media and entertainment, and home and garden industries. The Company’s other operations serve the consumer and office products, specialty chemicals, forestry and real estate markets.

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