International Paper (IP) announced that it has extended the Department of Justice’s review period with respect to the company’s acquisition of Temple-Inland. The new deadline has been moved from Jan. 27 to Feb. 13.
In a prepared statement, IP chairman and CEO John Faraci said: "We have been working constructively with the DOJ to address its concerns and anticipate entering into a definitive agreement on terms that are acceptable to all parties."
IP launched a hostile takeover bid for Temple Inland in July 2011 after being rebuffed by the board of directors of the Austin, Texas, producer of lumber, gypsum board, fiberboard and other building materials, as well as corrugated packaging.
Two months later, the two companies agreed to merge, with IP acquiring all of the outstanding common stock of Temple-Inland for $32 per share in cash, plus the assumption of $600 million in Temple-Inland’s year-end debt. The total transaction was values at approximately $4.3 billion.