Temple-Inland (TIN) Agrees to $3.48 Billion Offer from International Paper (IP)

Temple-Inland (NYSE:TIN) agreed to be acquired by International Paper Co. (NYSE:IP) for $3.48 billion after rejecting an earlier hostile bid of $30.60.

Terms of the deal are for $32 a share in cash and the assumption of $600 million in debt.

International Paper CEO John Faraci said, "The strategic benefits of this combination are clear and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders."

The board of directors for both companies have approved the deal.

International Paper was trading at $26.20, jumping $0.71, or 2.79 percent, as of 12:13 PM EDT. Temple-Inland soared to $30.82, up $6.19, or 25.13 percent.