Paper products giant International Paper Company (
) late Monday saw its unsolicited $3.3 billion bid for rival
) rejected, with TIN saying the offer undervalues its business.
Temple-Inland also noted the potential deal could face heavy
regulatory scrutiny under antitrust laws.
IP has offered $30.60 per share, or about $3.3 billion for TIN,
which represents a healthy 45% premium over the stock's Monday
closing price of $21.01.
Temple-Inland CEO Doyle Simons commented, "As the economic
recovery continues and the benefits from our strategy continue to
be realized, it is the stockholders of Temple-Inland who should
gain from those anticipated benefits, not the stockholders of
In contrast, IP CEO John Faraci said that "We believe that our
proposal offers clearly superior and compelling value to
International Paper shares rose $1.59, or +5.4%, in premarket
The Bottom Line
We have been recommending shares of International Paper (
) since Apr.5, 2011, when the stock was trading at $30.07. The
company has a 3.54% dividend yield, based on last night's closing
stock price of $29.65.
International Paper Company (
) is a "Recommended" dividend stock, holding a Dividend.com DARS™
Rating of 3.6 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
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