This Temple-Inland – International Paper thing is getting interesting.
We’ve reported on the weeks-long back-and-forth between the two packaging rivals, which started with Memphis-based International Paper making overtures for and eventually a hostile takeover bid for Temple-Inland.
Temple-Inland has said no at every turn, even going so far as to adopt a poison pill so no buyer can acquire more than 10 percent of the company. Temple-Inland thinks IP is valuing the company too low and won’t spend enough to buy it.
Now there’s a new wrinkle. A Temple-Inland investor is suing the company over its “utter refusal” to negotiate with IP as being not in the best interest of shareholders, according to a Bloomberg report.
“The director defendants’ selfish refusal to negotiate deprives Temple-Inland’s stockholders of the certainty of receiving a significant immediate cash premium versus waiting years for a recovery in building products,” lawyers for the investor said in the complaint. “Their rejection also ignores that the economic recovery is slow, which implies a slow recovery in packaging markets.”