Temple-Inland to Spin Off Financial, RE Ops

Temple-Inland Inc., Austin, Texas, says it is splitting its operations into three stand-alone public companies, retaining its manufacturing operations but spinning off the financial services and real estate operations.Temple-Inland will also sell its timberland holdings. The financial services unit, better known as Guaranty Bank, has branches in Texas and California, but originates single-family mortgages nationwide. It is also a warehouse lender, and according to the 12th edition of the Mortgage Industry Directory, was the 11th-largest lender of this type as ranked by commitments in 2005. The real estate business operates under the name Forestar Real Estate Group, includes single-family residential, commercial, mixed-use, and multifamily development and investment activities. Carl Icahn, a critic of Temple-Inland's board, said in a statement that he was pleased by the company's decision. "We look forward to continuing our dialogue with management and working to assist, as appropriate, in the separation of Temple-Inland's component businesses," Mr. Icahn said. He also withdrew his threat to nominate a slate of candidates in opposition to the current board.