Weyerhaeuser Increases Its Offer for Willamette

Weyerhaeuser Co. sweetened its hostile takeover bid for rival Willamette Industries Inc. by 4%, hoping to end a five-month standoff and clinch a $5.5-billion merger before a scheduled proxy battle next month. Federal Way, Wash.-based Weyerhaeuser said in a letter to Willamette’s board that it was raising its bid to $50 a share in cash, up from its previous offer of $48. Weyerhaeuser said that although it remains committed to completing a friendly merger, it will pursue its scheduled proxy battle to replace three directors on Willamette’s board at its June 7 annual meeting if the two sides do not begin negotiations. Willamette shares slipped 18 cents to close at $48.47 on the New York Stock Exchange. The stock hit a yearly high of $50.50 in December, just after Weyerhaeuser’s initial offer. Weyerhaeuser shares closed off 75 cents at $56.35, also on the NYSE. Portland, Ore.-based Willamette said it will review the increased bid. It urged shareholders not to tender their shares in support of the offer until it makes a formal recommendation.