San Francisco news source MarketWatch has reported that International Paper Co. has launched a deal for Temple-Inland Inc. on June 6, proposing to acquire the Austin, Texas-based company for $3.3 billion in cash.

IPC said it would pay $30.60 a share for all of Temple-Inland’s 108 million shares outstanding. The deal represents a 46 percent premium to Temple-Inland’s closing stock price of $21.01 Monday, June 6.

The offer comes after Temple Inland’s board unanimously rejected International Paper’s recent overtures. International Paper had 2010 sales of $25 billion. Temple Inland’s sales were $3.8 billion last year. In after-hours trading, Temple-Inland shares jumped 43 percent. International Paper was up 3 percent.

In a statement, Temple-Inland said the offer “grossly undervalues” its business and “is not in the best interest” of its shareholders.

Since the housing market remains depressed, Temple-Inland said International Paper is being “extremely opportunistic” and “disadvantageous” to Temple-Inland stockholders.

“As the economic recovery continues and the benefits from our strategy continue to be realized, it is the stockholders of Temple-Inland who should gain . . . not the stockholders of IP,” Temple-Inland CEO Doyle Simons said.