Belzbergs Offer $692.5 Million for Potlatch

Potlatch Corp., a forest products company, announced that it has received an unsolicited, $692.5-million bid from the Belzberg family of Canada.

The company said it received a letter Saturday from the Belzbergs’ First City Financial Corp. of Vancouver proposing to acquire all of the common stock of Potlatch for $45 a share in cash.

First City’s offer is conditioned on Potlatch withdrawing a proposed anti-takeover measure and on First City reaching a definitive agreement with Potlatch.

Potlatch had about 15.388 million shares outstanding as of Oct. 21, bringing the cost of the Belzberg offer to about $692.5 million. The company’s stock closed at $42.75, up $6.75, on the New York Stock Exchange Monday.

Potlatch Chief Executive Richard Madden said in a prepared statement that the board will meet this week to consider the letter, but he said he would urge the directors to reject the bid.

“In my judgment, First City’s proposal is extremely unattractive,” he said.

Potlatch’s proposed anti-takeover measure would give each existing shareholder four votes for every one for new holders. Shareholders were to vote on that measure Dec. 12.

Potlatch may be difficult to take over because about 40% of its stock is held by a group of families that descend from those who combined their companies to form Potlatch. Five family members sit on the 15-member board.