IP to acquire Temple-Inland
International Paper’s attempt to take over Temple-Inland concluded today with an announcement that the two companies have entered into a merger agreement.
International Paper will acquire 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 value is approximately $4.3 billion.
The deal has been approved by the boards of both companies, according to a document filed with the Securities and Exchange Commission (SEC). The transaction is expected to close in the first quarter of 2012.
The combination is expected to yield synergies of approximately $300 million annually within 24 months of closing, derived primarily from the areas of operations, freight, logistics, selling expense and overhead.
As stipulated by the merger agreement, International Paper will terminate its existing tender offer to acquire all of the outstanding common shares of Temple-Inland for $30.60 per share, and Temple-Inland will hold a special meeting of its stockholders to vote on the transaction. In addition to the approval of Temple-Inland’s stockholders, the transaction is subject to customary closing conditions, including antitrust approvals.
On June 6, Temple-Inland announced it had received an unsolicited proposal from International Paper to acquire the company for $30.60 per share in cash. Temple-Inland’s board of directors voted unanimously to reject that offer, saying it “grossly undervalued” the company and was not in the best interest of Temple-Inland’s stockholders. The following month, International Paper launched its hostile takeover bid.
All-American home construction seen as solution
According to an article in the New York Times, a Montana home builder is promoting construction using Made in USA materials. It’s not that easy.
In fact, the general contractor who came up with the idea, Anders Lewendal, said it’s probably not possible to achieve 100% compatibility to the all-American building approach, according to the article. But if all builders sought American-made products, the impact could be beneficial.
A typical home uses about 75% Made-in-USA materials, he told the newspaper.
Feds want to seize house built with stolen building materials
A Northern California man who pled guilty to operating an identity theft ring may lose his house because the building materials were purchased with stolen credit cards, according to an article in the Fresno Bee.
Federal prosecutors are trying to seize the unfinished, 5,500-sq.-ft. house east of Fresno because they claim Ford admitted he sent associates to Home Depot and other stores with stolen credit cards to purchase the building materials used in the project. Ford’s attorneys argue that their client forfeited his interest in the house in his plea agreement, but the home, which was built on land owned by his wife, now belongs to her.
A Sept. 20 civil trial has been scheduled to hear the government’s request to seize the house.