Timber rivals end hostile takeover bid

Tuesday, Jan. 22, 2002 | 9:56 a.m.

PORTLAND, Ore. -- After 14 months of stubborn negotiations, century-old timber rivals Weyerhaeuser Co. and Willamette Industries Inc. have agreed to a $6.1 billion merger.

The deal, announced Monday, was resisted for years by the Willamette board of directors, led by Chairman William Swindells Jr., grandson of a company co-founder.

"It's been an emotional afternoon. Most of us were hoping this day would never come," Willamette spokeswoman Jackie Lang said Monday.

Weyerhaeuser will pay $55.50 per share in cash, 50 cents per share more than what Weyerhaeuser Chairman Steven Rogel last month called his final offer. Weyerhaeuser also agreed to pay about $1.7 billion in debt and other expenses.

The merger requires approval from the boards of directors for both companies.

Weyerhaeuser, based in Federal Way, Wash., is the nation's third-largest timber products company, and Portland-based Willamette is the seventh-biggest.

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