West Fraser Timber gets joint takeover offer from CVC, Kronospan - Reuters

PaulGrecaud/iStock via Getty Images

West Fraser Timber (NYSE:WFG) +20.1% pre-market on Tuesday following a Reuters report that P-E firm CVC Capital and wood panel manufacturer Kronospan submitted a joint expression of interest to acquire the Canadian lumber company.

CVC and Kronospan have told West Fraser (WFG) management that they would like to proceed with deal negotiations, according to the report, which did not describe the proposed acquisition terms.

With higher interest rates and soaring home prices beginning to take a toll on home sales, lumber futures recently fell to their lowest since September.

Comments

[Paperone75]

Any update about the deal?

[Bous Investments]

WFG is very valuable company. I would hope for $135+. However, I am nervous about lumber prices. I will take my money and run

[sami92200]

At the current prices, it's à steal. Deserves at least 100%.

[Atari44]

WFG is very undervalued. The bidders won't put in a reasonable bid. IMO, they will submit a low-ball bid that will be rejected.

[Tonbrother]

I would imagine that has to put BLDR in the middle of the radar

[Shareholder287]

@Tonbrother West Fraser is manufacturer. BLDR is distributor. Two different business operations.

[Tonbrother]

@Shareholder287 ...I'm quite familiar and own them both ... they are highly correlated in that they both live and die by housing and building products ... that was my point ..