HOME | EDITORIAL CALENDAR | SUBSCRIPTION SERVICES | EVENTS CALENDAR | PAPER INDUSTRY LINKS | CONTACT US

Brookfield to buy Longview Fibre in $1.63 billion deal

Feb. 5, 2007 - According to an Associated Press report, Brookfield Asset Management Inc. announced plans to buy Longview Fibre Co. for $24.75 a share in a deal valued at $1.63 billion.

Brookfield said it will also assume about $518 million in debt.

The offer from Brookfield, based in Toronto, represents an 18 percent premium over Longview's share price at Friday's market close.

Longview Fibre is a real estate investment trust based in Longview, Wash. The acquisition will give Brookfield 588,000 acres of timberland in Washington and Oregon, a large pulp-and-paper complex and 15 corrugated container plants in a dozen states.

"We already manage 2 million acres of timberlands in North and South America, including 635,000 acres on the British Columbia west coast, proximate to Longview's timberlands in the Pacific Northwest," said Brookfield Managing Partner Sam Pollock. "The acquisition of Longview's timberlands will significantly expand our timberland asset management operations and solidify our position as the fourth largest owner-manager of timberlands in North America by value."

Brookfield currently holds over 3 million shares of Longview, about 4.6 percent of the outstanding shares.

The companies expect the deal to close in the second quarter following approval by Longview shareholders and completion of regulatory scrutiny.

SOURCE: Associated Press




PaperAge. Copyright © O'Brien Publications, Inc. All rights reserved.