Temple-Inland, Pep Boys: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Temple-Inland ( TIN) soared in late trades on Monday after International Paper ( IP) launched an aggressive hostile bid to acquire the company for more than $3 billion.

Temple-Inland's board has already rejected the offer, saying the proposal, which values its shares at $30.60 each, a 40%-plus premium to Monday's closing price at $21.01, "grossly undervalues Temple-Inland and is not in the best interest of Temple-Inland's stockholders."

The stock was last quoted at $29.90, up 42%, on volume of nearly 7 million, according to Nasdaq.com. Based on the regular session close, Temple-Inland shares were up just 2% year-to-date, and 13% in the past year. The $30.60 per share bid from International Paper is 17% above Temple-Inland's 52-week high of $26.21, which dates back to Feb. 21.

The news sparked buying of a number of other paper and materials companies in the after-hours session, including Louisiana-Pacific Corp. ( LPX), whose stock rose nearly 9% to $8.17 on volume of 76,000; Boise Inc. ( BZ), which jumped 7.2% to $8.01 on volume of 72,000 Packaging Corp. of America ( PKG), which added 5.5% to $28.30 on volume of 30,000; and Weyerhaueser ( WY), which gained almost 4% to $21.24 on volume of around 55,000.

International Paper is much bigger than Temple-Inland with sales of $25.2 billion for the fiscal year ended in December vs. $3.8 billion for Temple-Inland, which is headquartered in Austin, Texas.

In its press release, International Paper said it's went back-and-forth with Temple-Inland since mid-May about a potential deal before hearing that its proposal was being rejected over the weekend.

"We are very disappointed with the response of Temple-Inland's Board of Directors," said John Faraci, IP's chairman and CEO, in a statement, adding: "Our proposal reflects the future business plans and economic outlook for Temple-Inland and for the sector, and incorporates a significant portion of the cost savings resulting from the merger of International Paper and Temple-Inland, while at the same time creating value for International Paper shareholders."

International Paper shares are up nearly 10% so far in 2011, and were adding another 4% to $30.90 on volume of more than 400,000 in after-hours action.

Pep Boys - Manny, Moe & Jack

Shares of Pep Boys - Manny, Moe & Jack ( PBY) were weak late Monday after the autoparts retailer and services provider missed Wall Street's consensus estimate for its first-quarter results.

The Philadelphia-based company said it earned $12.4 million, or 23 cents a share, for the three months ended in April on sales of $513.5 million, below the average estimate of analysts polled by Thomson Reuters for a profit of 30 cents a share on revenue of $537 million.

The company said customers' spending is "constrained due to gas prices, and that the rainy spring reduced demand for appearance products," but noted that its service business continued to positive same-location sales.

The stock was last quoted at $11.90, down 12%, on volume of around 50,000, according to Nasdaq.com. Based on a regular session close at $13.50, the shares were basically flat so far in 2011. Of the six analysts covering the shares, three are at strong buy, one is at buy and two have hold ratings.

G-III Apparel

Shares of G-III Apparel ( GIII) also stumbled late Monday after the New York clothes maker posted a surprise loss for its fiscal first quarter and forecast a below-consensus profit for the second quarter.

G-III said it lost $520,000, or 3 cents a share, in the three months ended in April on revenue of $196.9 million, missing the average analysts' view for earnings of 4 cents a share. For the second quarter ending in July, G-III said it expects earnings of 18 to 22 cents a share vs. the current Wall Street view for a 22-cent per share profit.

The stock was down 8% to $35.30 in late trades with volume exceeding 50,000. Based on the regular session close at $38.47, the shares were up about 10% in 2011.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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