FEDERAL WAY, Wash.--Weyerhaeuser Company (NYSE:WY) today announced that it is commencing a cash tender offer for all of the outstanding shares of common stock of Willamette Industries, Inc. (NYSE:WLL) for $48 per share. Following completion of the tender offer, Weyerhaeuser intends to consummate a second step merger in which all remaining Willamette shareholders will receive the same cash price paid in the tender offer. Based on the latest publicly available information, Willamette has approximately 112.5 million shares on a fully diluted basis, giving the transaction a total equity value of approximately $5.4 billion. In addition, Willamette had total debt of approximately $1.7 billion on September 30, making the total value of the transaction approximately $7.1 billion. The acquisition is expected to be accretive to Weyerhaeuser's cash flow and earnings per share in the first year after close. Steven R. Rogel, chairman, president and chief executive officer of Weyerhaeuser, said, "While we still prefer to conclude a negotiated transaction with Willamette, their refusal to discuss a combination has forced us to take our offer directly to Willamette's shareholders -- the owners of the company. Willamette shareholders will now have the opportunity to decide the future of the company for themselves. This offer provides substantial value to Willamette shareholders at a premium well beyond what Willamette could achieve alone, now or later." The tender offer and withdrawal rights are scheduled to expire at 12:00 midnight E.S.T., January 4, 2001, unless extended.