Temple-Inland rejects rival’s takeover bid
MEMPHIS, Tenn. – Packaging and building materials maker Temple-Inland is rejecting a $3.3 billion unsolicited takeover bid from larger rival International Paper Co., saying the offer is too low and would face heavy regulatory scrutiny.
Memphis-based International Paper proposed a bid of $30.60 per share – or around $3.3 billion – for all outstanding shares of Austin, Texas-based Temple-Inland Inc. That represents a premium of about 45 percent over Temple-Inland’s closing stock price of $21.01 on Monday. Temple-Inland said the bid undervalues its business.
Temple-Inland makes particleboard, gypsum board and other building materials and currently controls around 12 percent of the North American market for corrugated packaging materials. A combined company would control around 40 percent of that market, Temple-Inland said.
New probe starts on Delta union elections
WASHINGTON – Delta Air Lines Inc. now faces a second investigation over its handling of another union election.
The federal National Mediation Board told the airline on Monday that it would take a closer look at whether elections for three groups of workers were tainted. Last week, the NMB said it would do the same thing regarding a vote late last year that was narrowly lost by the Association of Flight Attendants-CWA.
Pilots were the only large unionized group at Delta when it bought Northwest Airlines in 2008. The purchase triggered elections to see whether the unions who had represented Northwest workers would represent the combined groups.
Three votes covering about 29,000 workers ran through November and December. The union complained Delta improperly interfered.
Senator investigates Boeing complaint
WASHINGTON – Sen. Jim DeMint filed a Freedom of Information Act request Monday seeking communications that the federal labor agency may have had with union and Obama administration officials tied to Boeing’s attempt to open an aircraft plant in South Carolina.
DeMint, a South Carolina Republican, for the first time questioned whether the National Labor Relations Board’s complaint against Boeing was a payoff for $1.9 million in political contributions to Democratic candidates in 2009 and 2010 by the union that represents Boeing workers.
“Local 751 (of the International Association of Machinists and Aerospace Workers) would appear to be openly engaged in a pay-to-play system of political influence,” DeMint wrote in a letter to Lafe Solomon, the NLRB’s acting general counsel. “The question is unavoidable: Did Local 751’s political activities or campaign contributions ‘gain access to officials’ at the NLRB?” DeMint said he was quoting from a newsletter in which Local 751 leaders said its members’ political donations opened doors to elected officials.
Solomon filed a complaint in April alleging that Boeing decided to build an assembly line for its 787 Dreamliner in North Charleston, S.C., because of past labor strikes at the aerospace giant’s production hub in Everett.
An administrative law judge is scheduled to hear the case next week in Seattle.