Willamette says it will consider Weyerhaeuser’s new buyout bid

  • Tuesday, December 18, 2001 9:00pm
  • Business

Associated Press

PORTLAND, Ore. — Willamette Industries’ board said Tuesday it would explore Weyerhaeuser Co.’s revised $55 a share hostile takeover offer, but stressed it would also look at other options.

In a statement released late Tuesday, Willamette said it also would continue to talk with Georgia-Pacific Corp. about buying that company’s building products division, despite Weyerhaeuser’s strong opposition to that purchase.

Willamette, based in Portland, also said it would "consider other value-enhancing alternatives." Willamette spokesman Jackie Lang would not elaborate.

Willamette released the statement following a board meeting Tuesday morning. The company said the board planned to meet again in the first week of January to review the alternatives, and made clear that it would not make any decision on the revised Weyerhaeuser offer before then.

Willamette for months has fought Weyerhaeuser’s takeover bid, arguing that the price was too low. Last week, Weyerhaeuser increased its offer to $55 a share, up from $50.

While Willamette’s board has long resisted the hostile takeover, Weyerhaeuser in June was able to persuade shareholders to elect three new members to Willamette’s nine-person board who are friendly to its takeover bid.

Weyerhaeuser said last week it would withdraw its offer if Willamette completes a deal with Georgia-Pacific. But Weyerhaeuser might still be interested if Willamette continues negotiations or does something less than actually buy the Georgia-Pacific assets.

The meeting came a day after a New York money-management firm accused Portland-based Willamette’s board of going against shareholders’ interests by rejecting Weyerhaeuser’s bid.

In a letter to Willamette’s chairman, William Swindells Jr., P. Schoenfeld Asset Management threatened to raid the company’s nine-member board by proposing three candidates for election at the company’s next shareholder meeting, expected next summer.

Willamette’s board already includes three directors backed by Weyerhaeuser in Willamette’s 2001 elections.

"We continue to believe that a majority of your shareholders will not tolerate your intransigence," Peter Schoenfeld wrote. "Should you continue to thwart the desires of a majority of your shareholders, (the investment firm) currently intends to nominate a slate of directors at Willamette’s next annual meeting."

Schoenfeld wouldn’t say how many shares its clients — mostly pension funds, foundations and high-net worth individuals — own, but acknowledged its share is relatively small. The company’s investors have owned the stock for about a year.

Weyerhaeuser shares rose $1.12 to close at $54.23 Tuesday on the New York Stock Exchange, while Willamette shares fell 3 cents to close at $48.57.

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

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.