Exchange traded funds that invest in timber and forestry stocks rose Tuesday in the wake of International Paper’s (NYSE: IP) unsolicited bid for Temple-Inland (NYSE: TIN).
Temple-Inland’s board has adopted a so-called poison pill defense to prevent a hostile takeover attempt, according to reports. The company, which businesses include manufacturing packaging and forest products, said the International Paper bid is too low.
Temple-Inland shares jumped more than 40% on Tuesday, while International Paper gained nearly 2%.
The iShares S&P Global Timber & Forestry (NasdaqGM: WOOD) rallied 3%. The $236 million ETF has 3.4% of its assets in Temple-Inland.
Also Tuesday, Guggenheim Timber ETF (NYSEArca: CUT) climbed almost 2%. The fund counts International Paper as its second-largest holding at 5.3% of the portfolio.