Weyerhaeuser extends takeover bid

Published 9:00 pm Friday, September 14, 2001

Associated Press

FEDERAL WAY — Weyerhaeuser Co. extended its offer to buy shares in timber rival Willamette Industries for the sixth time, even as Weyerhaeuser appeared to be losing ground in its hostile takeover bid.

The $50-per-share offer was set to expire Friday, but will now run until Oct. 17.

As of Monday, the last day of regular trading before the terrorist attack Tuesday, Weyerhaeuser said shareholders had tendered or not withdrawn about 30 percent of the shares outstanding, or approximately 32.7 million of the 109 million Willamette shares available.

That’s a drop from the approximately 43 percent of shares, or about 46.5 million shares, that the Willamette shareholders had pledged as of Aug. 15.

Weyerhaeuser spokesman Bruce Amundson said the number of shares tendered was lower because some institutional investors had removed their offer of shares but planned to resubmit them closer to Friday’s deadline.

Because Tuesday’s attack closed stock markets, he said investors were not able to resubmit shares.

Willamette said in August it planned to buy back up to 10 million shares, or almost 10 percent of the company’s stock, to fight Weyerhaeuser’s takeover bid.

Federal Way-based Weyerhaeuser has been trying for months to win the takeover battle for Portland, Ore.-based Willamette. Earlier this year, Willamette shareholders narrowly elected three new board members friendly to Weyerhaeuser’s takeover bid.

Shares in Willamette closed at $47.90 on the New York Stock Exchange Monday. Shares in Weyerhaeuser closed at $53.23, also Monday on the New York Stock Exchange. Regular trading is scheduled to begin again next week.

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.