Willamette in Talks to Buy G-P Unit

Willamette Industries Inc., which is trying to block a hostile takeover bid from rival paper and lumber maker Weyerhaeuser Co., said it is in talks to buy Georgia-Pacific Group’s lumber business.

Investors have said such a transaction could thwart Weyerhaeuser’s 13-month, $7.18-billion bid for Willamette.

Willamette has called Weyerhaeuser’s $50-a-share offer too low. Weyerhaeuser is trying to defeat Willamette’s poison-pill takeover defense by adding supporters of the offer to the rival’s board.

“This has nothing to do with Weyerhaeuser,” Willamette spokeswoman Jackie Lang said. “Building products is a key segment for us, and we believe that their assets would be a good fit.”

A Weyerhaeuser spokesman said the company is studying the situation.

Shares of Willamette, based in Portland, Ore., fell 60 cents to $46.40 on the New York Stock Exchange.