Willamette Loses Election, Continues Fight

Willamette Industries will continue battling a hostile $5.5 billion takeover bid by Weyerhaeuser Co. even after three dissident directors won seats on the Willamette board.

Willamette argues that although Weyerhaeuser-friendly nominees narrowly won three seats on the Willamette board. since neither side garnered a majority of outstanding shares, there is insufficient support fbr Weyerhaeuser's current offer of $50 per share.

In the vote count certified by the independent inspectors, three Weyerhaeuser nominees, Thomas M. Luthy, Robert C. Lane and Evelyn Cruz Sroufe, received votes totaling 49.16 million shares, or 44.857c of the total shares outstanding. Willamette nominees Kenneth W. Hergenhan, Duane C. McDougall and Robert M. Smelick received votes totaling 46.9 I milfion shares. or 42.807c of all shares outstanding.

Shareholders also voted to reject two proposals, on declassification of the board and on the composition of the company's compensation committee.

"We're going to operate as business as usual," vowed Willamette pres. and c.e.o. McDougall. "Unless the board changes its vote fiom the way it has voted three or four times in the past, we're not trying to sell this company, and even if we were, $50 is not the right place to start."

Swindells said the burden rests with Weyerhaeuser either to "make a real offer or drop its hostile bid."

Weyerhaeuser chairman and c.e.o. Steven Rogel countered, "The outcome of the election provides clear direction to Willamette," said Weyerhaeuser. It is time for Weyerhaeuser and Willamette to sit down together and accomplish the objectives of Willamette's shareholders-a prompt, negotiated transaction with Weyerhaeuser to create the premier forest products company headquartered in the Pacific Northwest."

Although Weyerhaeuser's current tender offer is set to expire Aug. 15, the company already has extended the deadline several times. Weyerhaeuser says that if Willamette's new board continues to resist a sale. it would wait and wage another proxy battle next year, when it could win an additional three seats and gain control of the company's nine-member board.

Nardelli Vows Sales Will Rise

At his first shareholders meeting as Home Depot president and c.e.o., Robert Nardelli said he believes tax rebates and lower interest rates will encourage mortgage refinancing. increasing home-improvement spending this year.

Nardelli said the chain has not reached saturation in North America and asserted that he will more than double Depot's annual sales to $100 billion by adding more stores and "raising the roof'on existing sales.

The l'ormer GE executive main- tained that while consumers have not yet benefited from Federal Reserve rate reductions, he believes the cuts eventually will create a "huge influx back into the home improvement" sector. He said the extent of the sales recovery will depend on how consumers choose to spend any discretionary income they receive later in the year.

GP Workers Allege Racism

More than 4,000 African-American employees of Georgia Pacific Corp. filed a motion July l7 seeking class action status in a discrimination case against the Atlanta-based company.

The suit. filed as an amendment to a previous individual claim, alleges that qualified and experienced African-American workers were passed over for promotions based solely on race. A spokesperson for the company denied the allegations.

The employees in the suit work at 80 different company plants in nine southern states.

Jobbers Roll lnto Reno

The National Sash & Door Jobbers Association is scheduled to hold its 38th annual convention in Reno, Nv., Oct.21-31.

This year's convention is themed "The Challenge of Change" and will feature more than 500 exhibitors representing over 200 companles.

Speakers include astronaut Neil Armstrong; actor Charlton Heston; Task Masters owner Julie Morgenstern; Tom Gardner, The Motley Fool; distribution expert Dr. Don Rice, and customer service consultant Robert Tucker. Country music singer Clint Black will entertain.

Play Set Maker Drops GCA PlayNation Play Systems,

Kennesaw, Ga., has discontinued the use of CCA treated lumber in the manufacturing of their wooden playground equipment.

PlayNation becomes the first national playground manuf-acturer to make the switch to arsenic-free preserved wood. The company now uses Preserve Plus in all of its operations.

The company first began manufacturing playgrounds built with Preserve Plus in 1998. Six months after their introduction, playgrounds built with Preserve Plus accounted for 807o of PlayNation's total sales.