Based_on_this_analysis_the_IPO_price_of_the_stock_is_overvalued_by(1)-chen xian

Based_on_this_analysis_the_IPO_price_of_the_stock_is_overvalued_by(1)-chen xian

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Based on this analysis the IPO price of the stock is overvalued by $0.70 ($28.27- $27.57). On 9 December 2011, the current stock price is $28.27 and the calculated price is $27.57. On 6 June 2011, International Paper was intended to buy Temple-Inland with $30.60 per share. But the management of Temple-Inland was rejected the offer as the price is too low. After the three months battle, International Paper agreed to acquired Temple-Inland with $4.3 billion which includes the price of $32 per share and the assumption of $600 million in debt on 6 September 2011. Temple-Inland officially declared that its stockholder approved 86.9 million shares of common stock voting in favor of the buyout, representing over 98% of the shares voted on 7 December 2011. In November, International Paper sells $1.5 billion in senior unsecured notes debt to fund the acquisition of Temple-Inland. Other debt financing and cash also used to finance the purchase. The company ended the third quarter with cash and cash equivalents of $2.72
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Based_on_this_analysis_the_IPO_price_of_the_stock_is_overvalued_by(1)-chen xian

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