Robbins Umeda LLP Announces an Investigation of Temple-Inland Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Temple-Inland Inc. (NYSE: TIN) in connection with their efforts to sell the company to International Paper Company (NYSE: IP).
On September 6, 2011, Temple-Inland announced that it had entered into a definitive merger agreement pursuant to which International Paper will acquire all outstanding shares of the company in an all cash transaction. According to the terms of the deal, shareholders will receive $32.00 for each share of Temple-Inland they own. The transaction is expected to close as soon as the first quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Temple-Inland’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. On July 21, 2011, Temple-Inland announced second quarter 2011 financial results that were well above analyst estimates. The company reported adjusted EPS of $0.21, a 10.5% increase over the $0.19 reported in second quarter 2010 and above second quarter 2011 analyst estimates of $0.17. Additionally, Temple-Inland reported revenue of $1.02 billion, a 4.1% increase over the $976 million of revenue reported in second quarter 2010 and above second quarter 2011 analyst estimates of $1.01 billion. Furthermore, several leading analysts have set price targets for Temple-Inland that value the company’s stock from $35.00 to $37.00 per share, considerably higher than that offer price by International Paper.
One option available to shareholders is to file a class action against Temple-Inland to secure both the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner. If you own stock in Temple-Inland and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.