Temple-Inland -- the packaging, forest products, real estate and financial services company -- on Monday said it plans to separate itself into three stand-alone public companies and sell its timberlands.
Temple-Inland shares rose on the New York Stock Exchange.
As part of the breakup, Temple-Inland will retain its corrugated packaging and building products operations. The company will spin off its financial services business, which owns Guaranty Bank in Texas and California, and its real estate unit, which operates as Forestar Real Estate Group.
Billionaire investor Carl Icahn acquired a 6.7% stake in Temple-Inland in January and has advocated breaking up the company.
'Each of the three public companies -- manufacturing, financial services and real estate -- will be well positioned in the marketplace, have an appropriate capital structure and will benefit from greater strategic focus,' said Kenneth M. Jastrow II, chairman and chief executive, in a statement.
Temple-Inland also plans to sell off some 1.8 million acres of timberland in Texas, Louisiana, Alabama and Georgia.
Financial terms of the spinoffs and property sales have not been determined, the company said.