MacBlo Meeting to Vote on Weyerhaeuser Deal
9/21/99
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Title: MACBLO Meeting to Vote on Weyerhaeuser Deal
Source: Environment News Network, http://ens.lycos.com/
Status: Copyright 1999, contact source for permission to reprint
Date: September 21, 1999
VANCOUVER, British Columbia, Canada, September 21, 1999 (ENS) - The
Board of Directors of MacMillan Bloedel Limited has set October 28 as
the date for the Special Meeting of the common shareholders, option-
holders and warrant-holders to approve the a merger arrangement
involving MacMillan Bloedel, certain of its security holders and
Weyerhaeuser Company.
Weyerhaeuser Company based in Federal Way, Washington would acquire
MacMillan Bloedel Limited in a US$2.45 billion stock transaction that
would create the largest North American forest products company if
all approvals are obtained. The agreement was first announced in
June.
The Board of Directors also set the close of business on September 27
as the record date for establishing the shareholders and option-
holders entitled to be sent the management proxy circular for that
meeting. The management proxy circular and accompanying material will
be mailed to all common shareholders and option-holders before the
end of September.
"If the common shareholders, option-holders and warrant-holders
approve the Arrangement, and if all governmental consents and
approvals have been obtained prior to the date of the Special
Meeting, we anticipate that the Arrangement will become effective in
November 1999," said Tom Stephens, president and chief executive
officer.
The British Columbia government must sign off on the deal before it
can proceed. During public hearings this month, B.C. citizens
expressed considerable hostility to the merger, which would place
forest lands in the province in the hands of an American company. The
B.C. government has not yet handed down its decision.
The Board of Directors also approved changes to the merger agreement
with Weyerhaeuser Company to implement the Arrangement. As a result
of certain amendments to the merger agreement, the previously
announced meeting of the holders of the Adjustable Rate Convertible
Subordinated Debentures Series 1 will no longer be required.
MacMillan Bloedel has been advised by Weyerhaeuser Company that it
intends to amalgamate MacMillan Bloedel and Weyerhaeuser Exchangeco
immediately after the arrangement has become effective and, as a
result of this amalgamation and pursuant to the provisions of the
governing trust indenture, these debentures will be convertible into
exchangeable shares of Weyerhaeuser Exchangeco. Weyerhaeuser Company
as agreed to fully guarantee these debentures.
The Board of Directors also approved the redemption of all
outstanding Class B Preferred Shares Series 8 and Series 10 on
October 27 at $25 per share plus accrued and unpaid dividends up to
the date before the date of redemption. The notices of redemption
will be mailed to the holders of Class B Preferred Shares Series 8
and Series 10 on or about September 20.
MacMillan Bloedel is one of Canada's largest forest products
companies with integrated operations in Canada, the United States and
Mexico. The products of MacMillan Bloedel and its affiliate companies
are marketed throughout the world and include lumber, panelboards,
engineered lumber, containerboard and corrugated containers.