Willamette Board Rejects Weyerhaeuser Bid

The board of Willamette Industries Inc. said it has rejected a sweetened buyout offer from rival Weyerhaeuser Co. as a showdown approaches in the hostile takeover bidding launched in the fall by Weyerhaeuser Chairman Steve Rogel.

Meanwhile, about 1,400 Weyerhaeuser workers went on strike in Oregon and Washington after contract talks stalled over medical and pension benefits, wages and bringing in outside contractors to do union jobs.

Federal Way, Wash.-based Weyerhaeuser raised its offer to $50 a share from $48 a share, hoping to lure more Willamette shareholders to its side. The new offer values Portland, Ore.-based Willamette at about $5.45 billion. Weyerhaeuser also would assume $1.65 billion in Willamette debt in the deal.

In trading on the New York Stock Exchange, Willamette rose 19 cents to close at $48.75 while Weyerhaeuser fell 15 cents at $56.22.