A potential acquisition of Temple-Inland Inc. by International Paper Co. would give IP $9.62 billion in defined benefit assets and $4.56 billion in defined contribution assets, according to company filings and Pensions & Investments data.
Memphis, Tenn.-based International Paper on Monday announced it began a $3.3 billion tender offer for outstanding common shares of Temple-Inland, Austin, Texas.
As of Jan 1, Temple-Inland had worldwide defined benefit plan assets of $1.28 billion and liabilities of $1.59 billion, for a funding ratio of about 80%. The asset allocation of Temple-Inland's plan was 79.6% fixed income, 13% equities, 6% real estate, 0.9% cash and other, and 0.5% private equity.
As of Dec. 31, International Paper's U.S. defined benefit plan assets totaled $8.34 billion with liabilities of $9.82 billion, for a funding ratio of 84.9%. The asset allocation for the company's U.S. defined benefit plan was 38.8% equities, 27.3% fixed income, 9.7% cash and other, 8.2% hedge funds, 7.8% real estate, 5% private equity and 3.2% commodities.
International Paper had defined contribution assets of $3.95 billion as of Sept. 30, while Temple-Inland had $607 million in defined contribution assets as of the same date, according to P&I data.
Tom Ryan, a spokesman at International Paper, could not comment on details of the plans' integration. According to the company's news release, its offer to acquire Temple-Inland will expire at 5 p.m. EDT Aug. 9.