In an industry where the words acquisition, merger and consolidation litter press releases and annual reports, one company is holding out. Willamette Industries, an integrated forest products company based in Portland, Ore., recently rejected a cash-for-stock offer from much-larger rival Weyerhaeuser Co. Weyerhaeuser has courted Willamette for several years and at $48 per share, the latest offer made Nov. 6 is valued at about $7 billion. Thanks, but no thanks, was the reply from Willamette. The offer, Willamette officials said, undervalues their company by taking advantage of a down cycle in the industry when stock prices are depressed. "Weyerhaeuser's latest proposal is just another opportunistic gambit," said Chief Executive Officer Duane McDougall during a conference with analysts Nov. 16. "Their proposal undervalues what we think is the premiere franchise in the industry." Weyerhaeuser begs to differ: "We think it is a very fair offer and a very generous offer and in the best interest in both companies," said Bruce Amundson, director of financial and external communications. On the same day of McDougall's conference, Steven Rogel, Weyerhaeuser president and chief executive officer, shot back with a letter to McDougall and chairman William Swindells stating in no uncertain terms that Weyerhaeuser isn't going to back off. "Please understand, we're committed to completing this transaction," Rogel wrote. "We are currently reviewing our options and strongly discourage you from initiating any actions that may impede or delay a combination with Weyerhaeuser and impair Willamette shareholder value." Willamette owns 1.7 million acres of forestland in the United States and produces building materials, composite wood panels, fine paper, office paper products, corrugated packaging and grocery bags. Should an acquisition go forward, Weyerhaeuser would emerge as an even stronger version of itself. Already one of the world's largest integrated forest products companies, Weyerhaeuser could envelop Willamette easily on several fronts, spanning fine papers, containerboard and wood products. Weyerhaeuser's 1999 sales were $12.3 billion. With Willamette, the company could boast sales in excess of $16 billion. In his initial proposal to Willamette, Rogel identified $300 million in annual cost savings.