Temple-Inland shareholders to vote Dec. 7 on IP's proposed US$3.7B acquisition; deal would give US$162M in combined 'golden parachute' pay to five top Temple-Inland executives

Bdebbie Garcia

Bdebbie Garcia

LOS ANGELES , November 8, 2011 () – Temple-Inland Inc. has scheduled a meeting on Dec. 7 for shareholders to vote on a proposed US$3.7-billion acquisition by International Paper Co., according to a securities filing on Monday, reported The Austin American-Statesman on Nov. 7.

Temple-Inland’s board of directors indicated in the filing that it recommends adoption of the agreement, the terms of which it has unanimously determined “are fair to, advisable and in the best interests” of the company, according to the filing.

In the agreement, a combined $162 million in “golden parachute” pay would be given to Temple-Inland’s top five executives, including Chairman and CEO Doyle Simons, the American-Statesman reported.

If the agreement is ratified by shareholders, it will still have to be approved by federal regulators as the merger of the two companies would represent about 40% of North America’s corrugated packaging materials market.

By revenue, International Paper is already the largest North American corrugated packaging producer, with $25 billion in 2010 revenue, and Temple-Inland is third largest, with $3.8 billion in annual revenue, reported the American-Statesman.

Austin, Texas-based Temple-Inland’s board approved the merger agreement on Sept. 6, after rejecting two earlier offers from Memphis, Tennessee-based International Paper.

The acquisition could be completed by this year-end, International Paper Chairman and CEO John Faraci said recently. The company has not indicated what changes it would make at Temple-Inland, which employs 10,500 companywide, the American-Statesman reported.

The successful bid of $32 per share was about 5% higher than International Paper’s initial offer, and calls for the company to assume $600 million in Temple-Inland debt, bringing the total value of the offer to $4.3 billion.

The merger agreement includes financial penalties if either company reneges on the deal or causes it to fall through, according to the filing, reported the American-Statesman.

The primary source of this article is The Austin American-Statesman, Austin, Texas, on Nov. 7, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.