Anonymous asked in Business & FinanceInvesting · 9 years ago

how will international paper takeover of temple affect ip stock?

how will the takeover of temple by international paper affect ip stock

1 Answer

  • Dave W
    Lv 6
    9 years ago
    Favorite Answer

    Usually when a takeover is announced, the stock of the company being acquired goes up and the stock of the acquirer goes down a few percent, but my expectation in this case is that it won't have a whole lot of impact in the short term. They've made this offer before (and Temple-Inland management rejected it) so it's probably not a surprise to anyone. It's an all cash offer, so no new shares will be issued as a result of it.

    Long-term, if the integration of the two companies goes smoothly and IP management can run the TIN business more profitably (either due to synergies or more effective management), then it should be a benefit to IP's profits and the stock price. Many mergers don't go smoothly though, so there's definitely a risk that the merger will hold down IP profits and share price for awhile after the merger.

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