Int'l Paper, Temple-Inland extend DOJ review period

(Reuters) - International Paper Co (IP.N) said it has agreed with the U.S. Department of Justice to further extend the regulatory review period for its $3.7 billion acquisition of Temple-Inland.

The deadline has been extended to February 13 from January 27.

"(We) anticipate entering into a definitive agreement on terms that are acceptable to all parties," International Paper Chairman and CEO John Faraci said in a statement.

In December, the companies moved the closing date of the deal to June 28 from June 6. IP would have to pay $200 million to Temple-Inland if the deal does not close by then due to opposition by regulators.

In September, Temple-Inland clinched the deal by agreeing to be bought by IP after the latter bumped up its offer by 5 percent, thus ending a prolonged hostile bid process.

Shares of IP, one of the world's biggest paper products company, closed at $30.98 on Friday on the New York Stock Exchange, while those of Temple-Inland closed at $31.68.

(Reporting by Zeba Siddiqui in Bangalore; Editing by Bob Burgdorfer)