UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G

Under the Securities Exchange Act of 1934

(Amendment No.    )*

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

R         Rule 13d-1(b)

¨         Rule 13d-1(c)

¨         Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Item 1.

(a)  Name of Issuer:

Temple-Inland Inc.

(b)  Address of Issuer’s Principal Executive Offices:

1300 MoPac Expressway South, 3rd Floor

Austin, TX 78746

Item 2.

(a)  Name of Person Filing:

(i)         Westchester Capital Management, LLC

(ii)        The Merger Fund

(iii)       The Merger Fund VL

(iv)       Dunham Monthly Distribution Fund

(v)        Merrill Lynch Investment Solutions – Westchester Merger Arbitrage UCITS Fund

(vi)       Green & Smith Investment Management L.L.C.

(vii)      Roy Behren

(viii)     Michael T. Shannon

(b)  Address or Principal Business Office or, if none, Residence:

(i)         100 Summit Drive, Valhalla, NY 10595

(ii)        100 Summit Drive, Valhalla, NY 10595

(iii)       100 Summit Drive, Valhalla, NY 10595

(iv)       10251 Vista Sorrento Parkway, Suite 200, San Diego, CA 92121

(v)        16 Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg

(vi)       100 Summit Drive, Valhalla, NY 10595

(vii)      100 Summit Drive, Valhalla, NY 10595

(viii)     100 Summit Drive, Valhalla, NY 10595

(c)  Citizenship:

(i)         Delaware

(ii)        Massachusetts

(iii)        Delaware

(iv)        Delaware

(v)         Luxembourg

(vi)        Delaware

(vii)       United States

(viii)      United States

(d)  Title of Class of Securities: Common Stock, $1.00 par value

(e)  CUSIP No.: 879868107

Item 3.                   If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a) Westchester Capital Management, LLC is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940, as amended.

(b) The Merger Fund is an investment company registered under Section 8 of the Investment Company Act of 1940, as amended.

(c) The Merger Fund VL is an investment company registered under Section 8 of the Investment Company Act of 1940, as amended.

(d) Dunham Monthly Distribution Fund is a series of Dunham Funds, an investment company registered under Section 8 of the Investment Company Act of 1940, as amended.

(e) Merrill Lynch Investment Solutions – Westchester Merger Arbitrage UCITS Fund is a sub-fund of Merrill Lynch Investment Solutions, a non-U.S. institution in accordance with Section 240.13d–1(b)(1)(ii)(J).

(f) Green & Smith Investment Management L.L.C. is an affiliate of Westchester Capital Management, LLC and investment adviser to GS Master Trust.

(g) Roy Behren is Co-President of Westchester Capital Management, LLC, the investment adviser of The Merger Fund and The Merger Fund VL, the sub-adviser of the Dunham Monthly Distribution Fund and the investment manager of Merrill Lynch Investment Solutions – Westchester Merger Arbitrage UCITS Fund. Mr. Behren is also Co-Manager and a member of Green & Smith Investment Management L.L.C.

(h) Michael T. Shannon is Co-President of Westchester Capital Management, LLC, the investment adviser of The Merger Fund and The Merger Fund VL, the sub-adviser of the Dunham Monthly Distribution Fund and the investment manager of Merrill Lynch Investment Solutions – Westchester Merger Arbitrage UCITS Fund. Mr. Shannon is also Co-Manager and a member of Green & Smith Investment Management L.L.C.

Item 4.           Ownership.

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

         (a)    Amount beneficially owned and (b) Percent of class:

  See Items 5 through 11 of the cover pages attached hereto.

This Schedule 13G shall not be construed as an admission that the Reporting Persons, either for purposes of Section 13(d) or 13(g) of the Securities Exchange Act of 1934, as amended, or for other purposes, are the beneficial owners of any securities covered by this statement.

         (c)    See Items 5 through 8 of the cover pages attached hereto.

Item 5.           Ownership of Five Percent or Less of a Class.

Not applicable.

Item 6.           Ownership of More than Five Percent on Behalf of Another Person.

Not applicable.

Item 7.           Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person.

Not applicable.

Item 8.           Identification and Classification of Members of the Group.

Not applicable.

Item 9.            Notice of Dissolution of Group.

Not applicable.

Item 10.          Certification.

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

February 10, 2012

Exhibit A

AGREEMENT

The undersigned, Westchester Capital Management, LLC, The Merger Fund, The Merger Fund VL, the Dunham Monthly Distribution Fund, Merrill Lynch Investment Solutions – Westchester Merger Arbitrage UCITS Fund, Green & Smith Investment Management L.L.C., Roy Behren and Michael T. Shannon, agree that the statement to which this exhibit is appended is filed on behalf of each of them.

February 10, 2012