P. M. BRIEFING : Great Northern Suffers Setback in Bid to Evade Georgia-Pacific

Great Northern Nekoosa Corp., battling a $3.8-billion bid by Georgia-Pacific Corp., suffered another setback today as a federal judge rejected its motion to block the hostile offer.

U.S. District Judge Gene Carter rejected Great Northern’s arguments, made in a hearing Monday, that its suitor and rival paper manufacturer should be stopped for violating federal securities laws. Great Northern had accused Georgia-Pacific of concealing plans to sell Maine mills and woodlands if its bid succeeds.

The ruling came as Great Northern looked for a friendly buyer in what Georgia-Pacific called a last-ditch effort to resist its offer.

Great Northern said Wednesday its investment banker, Goldman, Sachs & Co., had received inquiries from companies but the firm would not say how many companies or identify any of them.

Great Northern said it has directed Goldman Sachs to seek bids higher than Georgia-Pacific’s tender offer of $63 a share.