Privately held (by the Koch Bros.) paper and pulp company Georgia-Pacific has agreed to acquire Buckeye Technologies (UNKNOWN:BKI.DL) for the princely sum of $1.5 billion, Buckeye announced this morning.
The deal, structured as an all-cash transaction, would see G-P pay $37.50 per share to Buckeye shareholders, approximately a 25% premium to Tuesday's pre-announcement closing price. Logistically, G-P plans to invite shareholders to tender their shares to it at the proposed price. If at least 75% of shares outstanding are in fact tendered, then the acquisition will proceed.
For its part, Buckeye supports G-P's bid, with CEO John Crowe saying, "This transaction enables our stockholders to realize significant value."
Perhaps even more value than he knows. Already, Buckeye shares have run past Georgia-Pacific's proposed purchase price, and up to $37.75, in hopes a bidding war breaks out. Stay tuned and we'll let you know if that happens.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Buckeye Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.