American Printer's mission is to be the most reliable and authoritative source of information on integrating tomorrow's technology with today's management.

Willamette accepts Weyerhaeuser offer in principle

Jan 24, 2002 12:00 AM


         Subscribe in NewsGator Online   Subscribe in Bloglines

Willamette Industries Inc. (Portland, OR) finally agreed in principle to sell the company to Weyerhaeuser Co. (Federal Way, WA) for $55.50 per share in cash, or $6.1 billion, subject to negotiation of a definitive merger agreement. Willamette has consequently ended negotiations to acquire Georgia-Pacific Corp.’s (Augusta, GA) building materials unit.

Weyerhaeuser had launched a hostile takeover attempt of Willamette in November 2000, initially offering $43 per share. Willamette had rejected this and four following offers from Weyerhaeuser, contending that they were woefully inadequate. In the process, Weyerhaeuser had won a bitterly contested battle to place three representatives on Willamette’s nine-member board.

The offer will be considered at the Willamette board meeting at the end of this month. If approved, the merger will reportedly create a company with $20 billion in combined revenue, 7.5 million acres of timberland and the third largest paper producer, behind International Paper and Georgia-Pacific.