Skip to main content

Longview Fibre

( LFB) once again rejected an unsolicited takeover bid from Obsidian Finance and Campbell Group.

The Longview, Wash.-based company said the offer was undervaluing its assets, and was "highly conditional." The company's board believes that its improved operating plan and conversion to a real estate investment trust would result in a 20% growth in its annual cash dividend to $1.20 per share, in addition to a one-time special distribution of $385 million in cash and stock.

Longview says it was first approached in December. In March, Longview rejected a buyout bid from Obsidian and Campbell, who offered $26 per share in cash, the Associated Press reported. Later that month, Longview said it was re-examining the offer after receiving additional information about financing.

Scroll to Continue

TheStreet Recommends

The paper company also updated guidance. Longview said it expects 2006 cash provided by operations to be $130 million to $145 million, excluding the impact of $25 million to $30 million of non-recurring cash charges related to the REIT conversion refinancing and legal and advisory fees.

Consistent with previous guidance, the company expects 2006 capital expenditures to be $40 million to $50 million, including timber acquisitions.

This story was created through a joint venture between TheStreet.com and IRIS.