Weyco may sell containerboard division.(PART OF REIT CONVERSION?)

Official Board Markets, May, 2007

Weyerhaeuser Co., Federal Way, Wash., is now considering a broad range of strategic alternatives for its containerboard, packaging and recycling business. Alternatives range from continuing to hold and operate the assets to a possible sale or combination. Some industry analysts say this could pave the way for a conversion of the company into a Real Estate Investment Trust (REIT).

The company has been under pressure for some time to fully realize the value of its 6.4 million acres of U.S. timberlands for its shareholders. A number of paper and packaging companies have made this switch recently, largely to capitalize on the tax advantages offered by REIT status. "Weyerhaeuser is well on its way to REIT eligibility, having divested uncoated free sheet...

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