<b>Willamette Rejects Weyerhaeuser Bid</B>

Willamette Industries rejected a $5.3 billion offer by Weyerhaeuser Co., whose chairman has already hinted a hostile takeover battle may take place. next.

In a letter to Weyerhaeuser chairman and CEO Steve Rogel, Willamette's board of directors said that, after ``careful and thorough review,'' the board ``unanimously determined that the Weyerhaeuser proposal is not in the best interests of Willamette, its shareholders and other constituencies.''

Weyerhaeuser offered to pay $48 a share, or $5.3 billion, and assume $1.7 billion in Willamette debt to buy one of Oregon's oldest and largest companies.

A union of the two companies would create a powerful player in the timber industry that would seek to position itself so it would be less vulnerable in the cyclical industry. The combined company would be the second-largest North American timberland firm, ranking below International Paper Co.