Maxxam Group began its tender for Pacific Lumber.

The New York-based real estate management and development firm, controlled by Texas financier Charles E. Hurwitz, said the price was $38.50 cash per share, an increase of $2.50 over the proposed offer that it previously announced. Maxxam said it intends to finance the offer with $700 million in private placement debt securities and bank financing, with the balance of the $797-million offer to come from general corporate funds of Maxxam and its affiliates. Maxxam said Drexel Burnham Lambert, retained to assist in the private placement, said it was “highly confident” that it could obtain commitments to buy $400 million of debt securities.