NEW YORK (TheStreet) -- Weyerhauser (WY) hit a 52-week high of $33.75 on Thursday after the timberland owner announced preliminary results of its exchange offer with its split-off transaction of its homebuilding business Weyerhauser Real Estate, or WRECO.
The exchange offer ties to the "Reverse Morris Trust" transaction announced on Nov. 4, 2013. Under this transaction, a wholly owned subsidiary of TRI Pointe Homes (TPH) will merge into WRECO.
The company set the final exchange ratio for the offer at 1.7003 common shares of WRECO for each Weyerhauser common share. Each WRECO common share will automatically convert into the right to receive 1.297 shares of TRI Pointe common stock after the merger closes. Therefore, Weyerhauser shareholders who tendered their Weyerhauser common shares in the exchange offer would receive approximately 2.2053 shares of TRI Pointe common stock per Weyerhauser share.
The stock was up 2.13% to $33.60 at 10:43 a.m. More than 33 million shares had changed hands, compared to the average volume of 6,710,100.
Separately, TheStreet Ratings team rates WEYERHAEUSER CO as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WEYERHAEUSER CO (WY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, compelling growth in net income, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."