Temple-Inland Cancels Gaylord Acquisition

Temple-Inland Inc. said its bid for Gaylord Container Corp. failed after some shareholders declined to accept the offer.

Temple-Inland said in accordance with the offer, all Gaylord shares had to be tendered for the merger to go through. The company said it would return more than 47 million shares, or about 84 percent of all outstanding shares, which had been tendered, as well as all the bonds tendered without payment.

Temple-Inland in December revised its original bid to $841 million, or $1.25 per share, which comprised $70 million in cash and assumed debt of $771 million.