P.M. BRIEFING : Georgia-Pac. Sells Safety Paper

Georgia-Pacific Corp. said today it is selling safety-paper operations in Vermont and Iowa to remove an antitrust question in its attempt to buy Great Northern Nekoosa Corp.

The Atlanta-based company said it is selling facilities in Gilman, Vt., and Burlington, Iowa, to Seattle-based Simpson Paper Co., for an undisclosed price.

The Gilman plant makes safety paper, which is used in personal checks and securities certificates, and the Burlington plant converts and processes the paper.

In a federal lawsuit in Bridgeport, Conn., Great Northern claims Georgia-Pacific’s $3.8-billion hostile tender offer would run afoul of antitrust laws in the check-paper business and other areas.

“The sale of our safety-paper business is an unwelcome step to facilitate our acquisition of Great Northern Nekoosa Corp.,” Georgia-Pacific Chairman T. Marshall Hahn Jr. said in a statement.

“We couldn’t risk delaying or losing a pro-competitive $3.8-billion acquisition because of an adverse court decision regarding assets with a value of less than 1% of the transaction at issue.”