Maxxam’s buy-out of Pacific Lumber was delayed.
Supreme Court Justice William H. Rehnquist temporarily blocked the takeover bid by granting an emergency request by minority shareholders of the San Francisco-based lumber company. On Nov. 19, U.S. District Judge William Schwarzer of San Francisco approved the takeover by Maxxam Group, setting aside a state court ruling that had blocked the merger. The minority shareholders asked Rehnquist to suspend Schwarzer’s order to allow additional time for them to challenge the takeover. “The parties are invited to file additional briefs on the question of the propriety of the district court injunction against pending state court proceedings,” Rehnquist’s order said. He gave both sides until the close of business Monday to file such briefs.