Nekoosa Accepts Bid by Georgia-Pacific

Great Northern Nekoosa Corp. agreed to be acquired by Georgia-Pacific Corp. today for a sweetened $65.75 a share in cash, creating the largest lumber company in the United States.

The offer, which values Norwalk, Conn.-based Nekoosa at more than $3.6 billion, ends four months of a bitter takeover battle marked by lawsuits and accusations. Nekoosa once characterized Georgia-Pacific’s offer as a “junk deal.”

The acquisition will create a company that holds one-third of the paper-products market and will also hold about 17% of the timberland of Maine.

News of the agreement lifted Nekoosa’s shares, which rose $1.375 to $65.25 in active trading on the New York Stock Exchange soon after the mid-morning announcement. Georgia-Pacific was off 87.5 cents to $44.25

Nekoosa had rejected Atlanta-based Georgia-Pacific’s initial bid of $58 a share made Oct. 31 and subsequently rejected a $63-a-share bid made in early November.

In a joint statement, Georgia-Pacific said it entered into a definitive agreement to acquire Nekoosa for $65.75 a share and the agreement has been approved by the boards of both companies.

The statement said Nekoosa’s board will recommend that shareholders accept the new takeover offer.