Willamette Rejects Weyerhaeuser Offer

After more than a year of wrangling, Willamette Industries rejected Weyerhaeuser's final, $55-a-share takeover bid, saying it would terminate all talks with the company and instead pursue the acquisition of Georgia-Pacific's building products business.

William Swindells, chairman of Willamette, said the latest bid wasn’t enough. Swindells pointed to estimates that a combination of the two companies would yield $400 million in "synergies," or savings -- an amount Willamette leaders say should generate a higher offer from Weyerhaeuser.

In a statement, Weyerhaeuser said it was "disappointed" in the Willamette board's decision but has no plans to increase its bid.

The statement said, in part, "$55 per share is the highest price we are willing to pay. This is a premium offer that gives Willamette shareholders full and fair value for their investment in Willamette. We remain committed to this transaction."

Weyerhaeuser has said it will withdraw its bid if Willamette purchases the Georgia-Pacific group.
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