Seeking Alpha: Plum Creek's Value Finally Realized, But Weyerhaeuser Has Some Work To Do

I've been relatively bullish on Plum Creek Timber (NYSE:PCL) for a while, arguing (maybe stubbornly) that the shares were valued too cheaply in the public market relative to private market timberland transactions and the potential cash flow and value to be realized from timber and land sales as the U.S. housing market recovers.

It would seem that Weyerhaeuser (NYSE:WY) had at least a somewhat similar view of the situation, as the two companies have announced a merger that will see the two companies merge in an all-stock deal that will leave Weyerhaeuser shareholders with 65% of the combined company. Together, these two companies will own over 13 million acres of timberland, offering even more exposure to a housing recovery but also creating an opportunity for Weyerhaeuser to drive more value from Plum Creek's assets.

Follow this link for more:
Plum Creek's Value Finally Realized, But Weyerhaeuser Has Some Work To Do