ETF Trends
ETF Trends

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.

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