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Willamette bid sweetened
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December 13, 2001: 1:56 p.m. ET
Weyerhaeuser raises offer for smaller rival to $55 a share, or $6.5B.
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NEW YORK (CNN/Money) - Weyerhaeuser Co. raised its offer to acquire smaller rival Willamette Inc. to $55 per share, or $6.5 billion, in cash Thursday, aiming to head off Willamette's efforts to acquire Georgia-Pacific Corp.'s building products unit.
In a letter to Willamette board members Thursday, Weyerhaeuser Chairman, President and CEO Steven Rogel said, "Based on our knowledge of the Georgia-Pacific businesses, we believe that such a transaction will result in significant value destruction for Willamette shareholders."
Weyerhaeuser (WY: down $0.14 to $52.72, Research, Estimates) said the offer, which is a 10 percent increase over its previous bid of $50 a share, is its "best and final" offer. The Federal Way, Wash.-based company also said it will withdraw its bid if Willamette signs an agreement to buy the Georgia Pacific unit.
"Our offer is not a negotiating tactic," Rogel said in the letter. "It represents the absolute maximum price we are prepared to pay for Willamette."
Willamette (WLL: up $3.35 to $48.85, Research, Estimates) was not immediately available for comment.
Rogel has been trying to buy Willamette ever since he left the Portland, Ore., wood products company to become the first outsider to hold the top job at Weyerhaeuser. He announced the hostile takeover bid on Nov. 29, 2000, after repeated offers were rejected by Willamette.
Earlier this year, Willamette said it would open negotiations if Weyerhaeuser offered to bid closer to $60 per share.
Analysts widely viewed Willamette's discussions with Georgia-Pacific as an attempt to head off yet another proxy battle at the company's annual meeting next year, at which Weyerhaeuser could effectively gain control of Willamette's nine-member board. 
-- from staff and wire reports
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