P.M. BRIEFING : Great Northern Resists Takeover
STAMFORD, Conn. — Great Northern Nekoosa Corp. today rejected Georgia-Pacific Corp.’s $3.13-billion takeover offer, saying the $58-a-share bid was too low, would violate antitrust laws and would damage both companies financially.
Great Northern Chairman William R. Laidig said the $4.5 billion in debt the companies would incur would turn both firms “into one highly leveraged junk company.â€
“Georgia-Pacific’s tender offer represents no more than an attempt to take advantage of the industry’s current short-term down cycle and to seize for its own benefit the long-term values that should belong to all shareholders,†Laidig said in a letter to stockholders.
Great Northern stock fell $1.50 to $60.62 1/2 a share in midday New York Stock Exchange trading.
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