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La.-Pacific ups Forex offer
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August 2, 1999: 3:41 p.m. ET
Price for Canadian firm raised to $475M to counter Boise Cascade bid
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NEW YORK (CNNfn) - Louisiana-Pacific Corp. raised its bid Monday for Canadian company Le Groupe Forex 19 percent to C$714 million, or $475 million, from C$600 million, or $408 million, in response to a competing bid from Boise Cascade Corp.
Forex, a maker of paneling, later issued a statement saying the Louisiana-Pacific bid was "superior in the circumstances" to the Boise Cascade offer and it had authorized the renewal of its support agreement with Louisiana-Pacific.
Both Louisiana-Pacific and Boise Cascade offered $31 per share for all of Forex's 23 million diluted shares outstanding.
Louisiana-Pacific (LPX) originally offered C$26 cash per share, but Boise (BCC) raised the stakes July 28 with its offer, which the Forex board called "superior." Louisiana-Pacific had five business days to match or better the offer.
Boise Cascade didn't immediately return calls for comment.
Louisiana-Pacific said the deal would be immediately accretive to earnings if it goes through. The offers are subject to regulatory approval in the United States and Canada.
"We are the most sophisticated producer of [oriented strand board] and, therefore, can gain the most in an alliance with Forex," Mark A. Suwyn, president and chief executive officer of Louisiana-Pacific, said. "The customer, shareholders and employees of both companies will be well served by this combination."
Shares of Louisiana-Pacific rose 11/16 to 22-5/8 in late afternoon trading Monday, while Boise Cascade rose 1/2 to 39-1/4. 
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