Willamette Recommends Rejecting Hostile Bid

Paper company Willamette Industries Inc. said its board unanimously voted to recommend that its shareholders reject Weyerhaeuser Co.’s $5.4-million hostile takeover bid. Portland, Ore.-based Willamette said the $48-per-share offer was “inadequate and, among other things, not in the best interests” of the company’s shareholders. Willamette’s move was expected. Weyerhaeuser took the bid directly to shareholders in a cash tender offer after Willamette’s board last month rejected an unsolicited approach. “Our board’s position remains clear and unanimous--Willamette is not for sale,” Willamette Chief Executive Duane McDougall said. Weyerhaeuser was not immediately available for comment. Willamette’s shares closed off 38 cents at $48.63, while Weyerhaeuser closed off 50 cents at $45.75, both on the NYSE.