|
Willamette opens Weyerhaeuser talks
|
 |
December 18, 2001: 6:52 p.m. ET
Timber company mulls deal options, finally speaking with Weyerhaeuser.
|
NEW YORK (CNN/Money) - Willamette Industries finally agreed Tuesday to open merger talks with forest products rival Weyerhaeuser Co., over a year after Weyerhaeuser launched its original bid.
Portland, Ore.-based Willamette (WLL: Research, Estimates) will also look at other value enhancing alternatives as well as continuing to explore discussions with Georgia-Pacific Corp. and explore Weyerhaeuser's boosted offer.
Willamette's board will meet the first week of January to review its alternatives and does not expect to make a decision until that time, the company said.
Federal Way, Wash.-based Weyerhaeuser (WY: Research, Estimates) has been trying to buy Willamette since Nov. 2000 when it made an unsolicited bid of $48 a share bid which it then raised to $50 a share, or $5.5 billion, over the summer. Last week, Weyerhaeuser boosted its offer to $55 a share or $6.6 billion.
Earlier this month, timber company Willamette authorized its board to begin discussions to buy Georgia-Pacific's building products unit. Such a deal would create a leading producer of certain wood products in North America, the company said. Many speculated that the Georgia-Pacific talks were a way for Willamette to fend off another proxy battle with Weyerhaeuser.
Willamette said Tuesday it would reimburse Georgia-Pacific's for reasonable costs and expenses if the acquisition did not go through. 
|
|
|
|
|
|
|
