Today''s action on the M&A scene

Weyerhaeuser – Will
14 November 2000

Weyerhaeuser – Willamette
Weyerhaeuser, the third largest US forest products group producing wood and paper products, has approached Willamette, widely recognised as one of the best-run companies in the forest products industry, with a proposal to take over the latter.

The proposal places the value of the deal at $5.8 billion, offering $48 per Willamette share in cash -- a 38-per-cent premium to the share price last Friday. Weyerhaeuser would also assume $1.7 billion in Willamette debt.

It is understood that the Williamette board has refused to act on this proposal, which has provoked Weyerhaeuser to mount a hostile takeover bid.

According to analysts, the transaction, besides helping the industry to rationalise capacity, is a good fit for Weyerhaeuser to improve its market strength in fine papers, containerboard and wood products.

FedEx – American Freightways
In an effort to boost its ground service capabilities, the Memphis-based FedEx, the world's largest overnight delivery company, is to acquire American Freightways for $1.2 billion in cash and stock.