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Weyerhaeuser fizzle bums Canadians The Associated Press VANCOUVER, British Columbia -- MacMillan Bloedel investors are questioning the deal that would turn British Columbia's largest forest company over to Weyerhaeuser. The deal, which goes before shareholders for approval Oct. 28, was greeted with enthusiasm by investors when it was announced June 21. Now, it's looking tarnished because their MacMillan Bloedel shares have lost the premium the sale was expected to bring. The deal involved a share swap that linked the MB shares to the fortunes of Weyerhaeuser. But U.S. investors have been dumping American forest products companies because of falling lumber prices, and Weyerhaeuser, which is heavily weighted to the American lumber market, has suffered the steepest decline. The Federal Way, Wash., company was trading at $69 before the deal was announced. It closed Friday at $55.5625, down 20 percent. As a result, MacMillan Bloedel shareholders have seen their potential gains whittled to 6 percent over the pre-sale price from 30 percent. MB stock has actually fared little better than the stock of other coastal B.C. forest companies, in spite of the premium the sale was expected to deliver to shareholders. MB was trading at $21.05 before June 21. It jumped to a high of $27.70 in July and has since fallen back to $22.45. MacMillan Bloedel stock has tracked Weyerhaeuser because MB management accepted a straight share swap with no limits imposed if Weyerhaeuser should tank before the sale is completed. For each MB share, investors are to receive .28 Weyerhaeuser shares. MacMillan Bloedel's board of directors recommended the deal. At least one director -- Tom Taylor, who holds 10.5 million shares on behalf of the Bass family of Texas and the Ontario Teachers Pension Plan -- unloaded a portion of his holdings shortly after the deal was first announced. Taylor sold 330,000 shares in the $25.60 range. About 100 million MB shares have traded since June 21. "The thrill of the upside looks a lot smaller now," said industry analyst Reid Carter of First Marathon Securities. "Essentially investors are looking at MacMillan Bloedel being a $23 stock, not the $28 stock they thought they would sell." Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA