Willamette Board Rejects Weyerhaeuser, Pursues Georgia-Pacific Deal

Press release from the issuing company

PORTLAND, Ore., Jan. 4 - Willamette Industries announced that, following an evaluation of its strategic alternatives, its Board has determined to continue negotiations with Georgia-Pacific Corp. regarding a combination of both companies' building materials businesses. The Board also announced that it would reject the $55 per share offer by Weyerhaeuser Company as inadequate and terminate discussions with Weyerhaeuser regarding its offer. The Board strongly urges Willamette shareholders not to tender any shares to Weyerhaeuser. Chairman of the Board, William Swindells, said, "Following close examination of our options, the Board has decided that a transaction with Georgia-Pacific will deliver significant value to Willamette and is in the best interests of our shareholders. During our discussions with Weyerhaeuser and its advisors, we made a good faith effort at establishing a constructive dialogue and provided information regarding synergies, which we estimate to bein excess of $400 million. However, it became clear to us that Weyerhaeuser would not consider our new information and were not willing to increase their offer, which we continue to believe is inadequate.''