Weyerhaeuser Won’t Boost Willamette Bid

Weyerhaeuser Co., the No. 3 lumber-and-paper maker, said it won’t raise its $7.76-billion bid for Willamette Industries Inc. because it can’t find enough savings from the merger to justify a higher price.

Directors of Portland, Ore.-based Willamette are scheduled to meet this week, possibly to make a decision on whether to accept the offer of $55 a share. Weyerhaeuser said in a statement that it couldn’t find much more in savings than the $300 million it already had identified.

Weyerhaeuser, based in Federal Way, Wash., has been pursuing Willamette for more than a year. Willamette last month agreed to talk with Weyerhaeuser for the first time after the company increased its bid from $50 a share.

Willamette shares fell $1.47 to close at $50.65, while Weyerhaeuser fell 42 cents to $53.66, both on the NYSE.