Weyerhaeuser Continues Chase Of Willamette

Dogged in its pursuit of the reluctant takeover target, Weyerhaeuser Co. has extended its $5.5 billion tender offer for Willamette Industries until Dec. 5.

Weyerhaeuser noted that about 477o of Willamette's 110 million shares were tendered under the $50-ashare offer. Another 37o is owned by Richard Clark, who is interested in selling shares to settle his late father's estate (see Oct., p. 49). He informed Weyerhaeuser that he might sell for $55 a share, but Weyerhaeuser replied that it would negotiate only with

Willamette.

Two weeks later, after estimating its own per-share value in the $60s, Willamette indicated it would be willing to sit down at the bargaining table if Weyerhaeuser submitted a written offer in the high $50s.

The next day, Weyerhaeuser defended its current bid, explaining that it was based on estimates that a merger would save $300 million and that Willamette has refused to disclose information to help identify additional savings. However, Weyerhaeuser said it was open to meeting with Willa- mette "at any time to discuss any information that you have regarding synergies achievable in the context of a business combination today."

Boise Cascade To Be "Boise"

Boise Cascade will re-brand itself next year, going by the name of "Boise" alone.

The decision is expected to take place in the spring of 2002, with the name change appearing on most products and marketing materials.

For legal and financial trading, the corporation will keeps its full name.

"The overriding reason for the change is to have a visual presentation that does a better job of telling what the company is," said company spokesman Mike Moser.

Moser added that most employees and customers already refer to the company as "Boise."

Some industry analysts have suggested the name change is an attempt to distance the company from its forest products image, which recently has been under increasing scrutiny by environmental activists.

Moser denied the decision was a reaction to environmentalists. "We're very proud of our heritage. We're not trying to get away from anything we do today," he said.

The company was founded in 1957 when Boise Payette Lumber Co., Boise, Id., and Cascade Lumber Co., Yakima, Wa., merged.

PALS Packing For Oakland

Plywood And Lumber Sales, Emeryville, Ca., will consolidate its operations in Oakland, Ca.

PALS expects to relocate its East Bay wholesale distribution center and headquarters and its Berkeley, Ca.based EarthSource division to 1618 28th St. in Oakland in March.

Company founder and c.e.o. Jeff Hunt said he selected the new location following a personal invitation by Oakland mayor Jerry Brown, who detailed the city's excellent transportation and port facilities and labor pocl.

Hard-To-Treat Decking O K'ed

A proposed decking standard that allows diminished treatment of thin sapwood species was approved by the American Wood-Preservers' Association's T-2 (Lumber & Timber) subcommittee meeting.

If finalized, the standard would permit difficult-to-treat species to be treated with reduced penetration and assay zone requirements, and no incising restrictions.

According to the Southern Forest Products Association, "This so-called 'shell' or 'envelope' treatmenl raises numerous concerns regarding the serious risk of premature wood failures, inappropriate applications, and the subsequent loss of consumer confidence in all treated products."

The proposed standard is now eligible for the next level of approval within the AWPA voting procedures.

Winds Stoke Lumber Blaze

A wind-fueled fire hurdled through the lumber yard of Sierra Cedar Products, Linda, Ca., causing $2.5 million in damages.

The blaze began in a levee near the yard and spread quickly through mounds of aging sawdust before it was extinguished four hours later.

More than 60 firefighters battled the Oct. 12 blaze as up to 40 mph winds gusted through the site.

Sierra Cedar's Derrick Pendergras said employees and firefighters were at times overwhelmed by the intensity of the fire. "There were a couple of times I ran out of breath and couldn't

see," he said. "We just did what we could."

There were no reports of injuries to firefighters or employees.

Most Redwoods Certified

According to new findings from the California Redwood Association, three out of every four acres of commercial redwood forest in the U.S. are now independently certified and sustainably managed.

CRA's Pamela Allsebrook notes that most major redwood lumber mills and landowners have completed independent third party certification of their redwood forestlands. "Over I million acres or approximately 76Vo of the available redwood forests have been recognized by the Forest Stewardship Council or the Sustainable Forestry Initiative," Allsebrook said.

Both certification groups look at forest health, protection of water quality, enhancement of wildlife habitat and minimizing the visual impact of harvesting when evaluating managed forests.

Allsebrook credits retailers, builders and remanufacturers with driving much of the recent demand for certifi ed forest products.

Expo Begins Online Sales

Home Depot has launched a new Web site to test-market online sales for its Expo Design Centers.

The pilot test of Expo.com began Sept. 27, offering 200 products, including kitchen faucets, bath and decorative hardware, ceiling fans and light fixtures. During the test, products will be shipped via United Parcel from the Plano, Tx., Expo.

Depot has 33 Expos in I I states.

E-Biz For Small Retailers

CCI-Triad's Hardlines and Lumber Group, Livermore, Ca., has introduced an electronic storefront feature to accompany its existing Triad Eagle software.

INet e-Store allows retail customers to research and buy merchandise over the Internet. "E-Store lets the average retail operation offer its customers the convenience of researching and purchasing products online from their own PC," said marketing mgr. Rob Vomund. "It's also a 'plug and play' service that is easy for retailers to implement, requiring no previous Web experience to operate, " he added.

Currently over 6,000 retail locations use the Triad Eagle system.

Sugut Sn"

Simpson Closes Two Mills

Simpson Timber Co., Shelton, Wa., indefinitely closed its Shelton and Dayton Wa., sawmills.

Marketing mgr. Laurie Creech said market conditions had forced the closures, but that the status of the mills "would be looked at week-to-week."

Mill #5 in Dayton was built in 1976 as a stud mill. and later refitted in 1999 as a dimension facility. Mill #3 in Shelton was built in 1947.

The shutdowns have not affected the company's Korbel, Ca., sawmill.

Dealer Expands, Joins Ace

Craik Lumber Co., Walla Walla, Wa., is building a new 22,500-sq. ft. hardware store and warehouse next to its current retail lumber location. The hardware store, which will open under the Ace banner, is being built in front of the warehouse portion, with aims at capturing the building supply market.

Owner Larry Craik said the hardware store will be a full-service location. but adds. "We're not going to try to compete with Wal-Mart, Kmart or those others."

The project will cost $538,550 and, according to Craik, was prompted by increased business and a need for greater exposure.

The building is expected to be completed by late December.

Sierra Forest Loses Suit

Sierra Forest Products, Terra Bella, Ca., was among the plaintiffs that lost a suit challenging the legitimacy of California's Giant Sequoia National Monument.

The monument, which encompasses 32'7,769 acres within the Sequoia National Forest, was designated in 2000 by President Clinton to put an end to timber harvesting of those forests.

Plaintiffs in the suit sought to reverse the proclamation or at least reduce the the size of the monument to the 20,000 acres that actually included sequoias already protected under the law.

Federal judge Ricardo Urbina dismissed all nine counts of the lawsuit and granted the government's motion to dismiss the case.

Sierra Forest Products was joined in the suit by Tulare County, Sierra Nevada Access Multiple Use & Stewardship Coalition and a snowmobile association.

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