<B>Weyerhaeuser Looks to Hostile Bid</B>

Weyerhaeuser Co. plans to take its $7.1 billion bid for Willamette Industries Inc. directly to shareholders after the company rejected the proposal. The proposed deal would include $5.4 billion for the company and taking on $1.7 billion of Willamette’s debt.

The earlier bid was 38 percent more than Willamette's share price the day before the offer was made public.

On Nov. 15, the board of Portland, Oregon-based Willamette rejected the Weyerhaeuser offer, leading to Weyerhaeuser taking its proposal directly to company shareholders. According to press reports, Weyerhaeuser has continued to maintain its share price proposal. This may indicate there are few possible counter offers from other companies.

The proposal is the latest within the industry as companies consolidate control over output. The bid for Willamette has long been expected. With rapid consolidation of most parts of the forest products industry creating a handful of giants, this recent move looks to marry two of the larger companies to compete with the largest forest products companies.

Weyerhaeuser said when making its unsolicited offer public that the combination would provide a more balanced business mix. Willamette makes lumber and plywood, in addition to corrugated boxes, brown paper bags, computer paper and copy paper.