NEW YORK -- Shares of Smurfit-Stone Container Corp. rose nearly 28% on Monday after Rock-Tenn Co. said it would buy the containerboard and corrugated packaging producer for $35 a share, or $3.5 billion in cash and stock. The purchase price represents a 27% premium to Smurfit-Stone's prior-day closing price. The deal lifted the entire paper and forest products segment, with rival International Paper Co. up 3.3%, Temple-Inland Inc. rising 5.5% and KapStone Paper & Packaging Corp. adding 5%. Shared of Smurfit-Stone last traded at $35.12, up 27.6%.

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