Willamette

The case study presents a potential hostile takeover of Willamette by the global timber giant
Weyerhaeuser company. The company has initiated a hostile takeover of Willamette
following a fifteen-month unsuccessful bid to purchase the company. The initial rejection of
purchase offer at $48 per share was rejected on the basis of it being inadequate for the value
of Willamette. In pursuit of the hostile takeover, Weyerhaeuser improved its offer price to
$55 per share, but Willamette’s board of directors again resisted the offer as inadequate.
But it seems like Willamette is intending to avoid this takeover or it wants a still higher bid.
And I think, a little increase in bid value would not harm Weyerhaeuser. This acquisition is
good for big fish like Weyerhaeuser as we can see Willamette is important to the goals and
strategies of Weyerhaeuser. Weyerhaeuser is larger in capital share and operations, both
companies have significant potential growth in their respective markets. However, this
acquisition provides an opportunity to further cementing the company’s hold on the global
market.