From: Gary Lutin
To: Distribution: Willamette Shareholders
Sent: Thursday, May 17, 2001 9:30 PM
Subject: Letter to CEO McDougall following NYC presentation
Willamette's CEO McDougall and CFO
Hawley presented the management position and responded to questions from
shareholders at a meeting today, as part of management's campaign tour of
New York. After discussing reactions with a few of you who attended, and
from some of you who met separately with management, I sent a letter to
Mr. McDougall with two additional questions. The text of the letter is
copied below.
Please call me (212/605-0335) if you'd like to
hear more about the meeting, or discuss your views.
GL - 5/17/01
Text of 5/17/01 letter to Duane C. McDougall
[Letterhead]
LUTIN & COMPANY
575 MADISON AVENUE, 10th FLOOR
NEW YORK, NEW YORK 10022
Telephone (212) 605-0335
Facsimile (212) 605-0325
May 17, 2001
By telecopier: 503/273-5604
Mr. Duane C. McDougall
Willamette Industries, Inc.
1300 Southwest Fifth Avenue, Suite 3800
Portland, Oregon 97201
Dear Mr. McDougall:
Glad that we were able to meet during your visit to New York, I
appreciated the opportunity to learn more about your views of how
Willamette's management can most effectively serve the interests of your
shareholders.
Based on a review of your presentations and comments with a sampling
of representative shareholders, two additional questions are submitted for
your response:
1. Regarding the election of directors, are you and the other two
management nominees, Messrs. Hergenhan and Smelick, willing to commit
yourselves to a process of open and cooperative explorations of a possible
combination with Weyerhaeuser? If you want to make this "campaign
promise" to win the votes of shareholders, I will be pleased to confer
with you in the wording of a position statement.
2. On the subject of strategic alternatives, the merits of your
proposed "consolidator" role is supported by industry observations as well
as by the superior performance record of Willamette's management. But is
not clear why you suggest it as an alternative to the proposed combination
with Weyerhaeuser. Is there some reason why you could not pursue the
"consolidator" strategy with at least equal and probably greater effect as
part of a combined Willamette-Weyerhaeuser enterprise?
Finally, as a personal observation, I want to compliment you on the
open candor with which you have been responding to investor concerns. It
demonstrates fundamental respect for your shareholders, including those
who disagree with you, and I hope that respect is recognized and
reciprocated.
Sincerely,
/s/
Gary Lutin
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