Georgia-Pacific/NNP Corp./NNP 's/POS unsolicited/JJ $/$ 3.19/CD billion/CD bid/NN for/IN Great/NNP Northern/NNP Nekoosa/NNP Corp./NNP was/VBD hailed/VBN by/IN Wall/NNP Street/NNP despite/IN a/DT cool/JJ reception/NN by/IN the/DT target/NN company/NN ./. 
William/NNP R./NNP Laidig/NNP ,/, Nekoosa/NNP 's/POS chairman/NN ,/, chief/JJ executive/JJ officer/NN and/CC president/NN ,/, characterized/VBD the/DT $/$ 58-a-share/JJ bid/NN as/IN ``/`` uninvited/JJ ''/'' and/CC said/VBD Nekoosa/NNP 's/POS board/NN would/MD consider/VB the/DT offer/NN ``/`` in/IN due/JJ course/NN ./. ''/'' 
T./NNP Marshall/NNP Hahn/NNP Jr./NNP ,/, Georgia-Pacific/NNP 's/POS chairman/NN and/CC chief/JJ executive/NN ,/, said/VBD in/IN an/DT interview/NN that/IN all/DT terms/NNS of/IN the/DT offer/NN are/VBP negotiable/JJ ./. 
He/PRP added/VBD that/IN he/PRP had/VBD spoken/VBN with/IN Mr./NNP Laidig/NNP ,/, whom/WP he/PRP referred/VBD to/TO as/IN a/DT friend/NN ,/, by/IN telephone/NN Monday/NNP evening./CD ``/`` I/PRP 'm/VBP hopeful/JJ that/IN we/PRP 'll/MD have/VB further/JJ discussions/NNS ,/, ''/'' Mr./NNP Hahn/NNP said/VBD ./. 
On/IN Wall/NNP Street/NNP ,/, takeover/NN stock/NN traders/NNS bid/VBP Nekoosa/NNP 's/POS stock/NN well/RB above/IN the/DT Georgia-Pacific/NNP bid/NN ,/, assuming/VBG that/IN Nekoosa/NNP 's/POS will/MD either/DT be/VB sold/VBN to/TO a/DT rival/JJ bidder/NN or/CC to/TO Georgia-Pacific/NNP at/IN a/DT higher/JJR price/NN --/: as/RB much/JJ as/IN $/$ 75/CD a/DT share/NN ,/, according/VBG to/TO some/DT estimates/NNS ./. 
Yesterday/NN ,/, Nekoosa/NNP common/NN closed/VBD in/IN composite/JJ New/NNP York/NNP Stock/NNP Exchange/NNP trading/NN at/IN $/$ 62.875/CD ,/, up/IN $/$ 20.125/CD ,/, on/IN volume/NN of/IN almost/RB 6.3/CD million/CD shares/NNS ./. 
Georgia-Pacific/NNP closed/VBD down/RB $/$ 2.50/CD ,/, at/IN $/$ 50.875/CD in/IN Big/NNP Board/NNP trading/NN ./. 
Takeover/NN stock/NN traders/NNS noted/VBD that/IN with/IN the/DT junk-bond/NN market/NN in/IN disarray/NN ,/, Georgia-Pacific/NNP 's/POS bid/NN is/VBZ an/DT indication/NN of/IN where/WRB the/DT takeover/NN game/NN is/VBZ headed/VBN :/: namely/RB ,/, industrial/JJ companies/NNS can/MD continue/VB bidding/NN for/IN one/CD another/DT ,/, but/CC financial/JJ buyers/NNS such/JJ as/IN leveraged/JJ buy-out/NN firms/NNS will/MD be/VB at/IN a/DT disadvantage/NN in/IN obtaining/VBG financing/NN ./. 
``/`` The/DT way/NN the/DT world/NN is/VBZ shaping/VBG up/IN ,/, the/DT strategic/JJ buyer/NN is/VBZ going/VBG to/TO be/VB the/DT rule/NN and/CC the/DT financial/JJ buyer/NN is/VBZ going/VBG to/TO be/VB the/DT exception/NN ,/, ''/'' said/VBD one/CD trader/NN ./. 
For/IN the/DT paper/NN industry/NN specifically/RB ,/, most/RBS analysts/NNS said/VBD the/DT deal/NN will/MD spur/VB a/DT wave/NN of/IN paper-company/JJ takeovers/NNS ,/, possibly/RB involving/VBG such/JJ companies/NNS as/IN Union/NNP Camp/NNP Corp./NNP ,/, Federal/NNP Paperboard/NNP Co./NNP and/CC Mead/NNP Corp/NNP ./. 
The/DT analysts/NNS argued/VBD that/IN Georgia-Pacific/NNP 's/POS offer/NN ,/, the/DT first/JJ hostile/JJ bid/NN ever/RB among/IN major/JJ players/NNS in/IN the/DT paper/NN industry/NN ,/, ends/VBZ the/DT unwritten/JJ taboo/NN on/IN hostile/JJ bids/NNS ,/, and/CC will/MD push/VB managements/NNS to/TO look/VB closely/RB at/IN the/DT industry/NN 's/POS several/JJ attractive/JJ takeover/NN candidates/NNS ./. 
``/`` Consolidation/NN has/VBZ been/VBN long/JJ overdue/JJ ./. 
It/PRP was/VBD just/RB the/DT culture/NN of/IN the/DT industry/NN that/WDT kept/VBD it/PRP from/IN happening/VBG ./. 
The/DT Georgia-Pacific/NNP offer/NN has/VBZ definitely/RB changed/VBN the/DT landscape/NN ,/, ''/'' said/VBD Gary/NNP Palmero/NNP of/IN Oppenheimer/NNP &/CC Co./NNP Added/VBD Mark/NNP Rogers/NNP of/IN Prudential-Bache/NNP Securities/NNP Inc./NNP :/: ``/`` It/PRP 's/VBZ much/RB easier/JJR to/TO be/VB second/JJ ./. ''/'' 
A/DT Georgia-Pacific/NNP acquisition/NN of/IN Nekoosa/NNP would/MD create/VB the/DT largest/JJS U.S./NNP forest-products/NNS company/NN ./. 
Based/VBN on/IN 1988/CD sales/NNS ,/, Georgia-Pacific/NNP ranked/VBD third/JJ at/IN $/$ 9.51/CD billion/CD ,/, behind/IN Weyerhaeuser/NNP Co./NNP at/IN $/$ 10/CD billion/CD and/CC International/NNP Paper/NNP Co./NNP at/IN $/$ 9.53/CD billion/CD ./. 
Nekoosa/NNP ranked/VBD 11th/JJ with/IN sales/NNS of/IN $/$ 3.59/CD billion/CD ./. 
The/DT combined/VBN company/NN would/MD have/VB had/VBN 1988/CD sales/NNS of/IN $/$ 13.1/CD billion/CD ./. 
But/CC such/JJ a/DT combination/NN also/RB presents/VBZ great/JJ risks/NNS ./. 
At/IN a/DT time/NN when/WRB most/RBS analysts/NNS and/CC industry/NN consultants/NNS say/VBP pulp/NN and/CC paper/NN prices/NNS are/VBP heading/VBG for/IN a/DT dive/NN ,/, adding/VBG capacity/NN and/CC debt/NN could/MD squeeze/VB Georgia-Pacific/NNP if/IN the/DT industry/NN declines/NNS more/JJR than/IN the/DT company/NN expects/VBZ ./. 
Moreover/RB ,/, any/DT unexpected/JJ strengthening/NN of/IN the/DT dollar/NN would/MD hurt/VB Georgia-Pacific/NNP because/IN two/CD of/IN Nekoosa/NNP 's/POS major/JJ product/NN lines/NNS --/: containerboard/NN ,/, which/WDT is/VBZ used/VBN to/TO make/VB shipping/VBG boxes/NNS ,/, and/CC market/NN pulp/NN --/: are/VBP exported/VBN in/IN large/JJ quantities/NNS ./. 
``/`` Nobody/NN knows/VBZ how/WRB deep/JJ the/DT cycle/NN is/VBZ going/VBG to/TO be/VB ,/, ''/'' said/VBD Rod/NNP Young/NNP ,/, vice/NN president/NN of/IN Resource/NNP Information/NNP Systems/NNP Inc./NNP ,/, a/DT Bedford/NNP ,/, Mass./NNP ,/, economic-forecasting/JJ firm./NN ``/`` Depending/VBG on/IN how/WRB far/RB down/RB you/PRP go/VBP ,/, it/PRP may/MD be/VB difficult/JJ to/TO pay/VB off/IN that/DT debt/NN ./. ''/'' 
One/CD person/NN familiar/JJ with/IN Georgia-Pacific/NNP said/VBD the/DT acquisition/NN would/MD more/JJR than/IN double/VB the/DT company/NN 's/POS debt/NN of/IN almost/RB $/$ 3/CD billion/CD ./. 
It/PRP also/RB could/MD be/VB a/DT drag/NN on/IN Georgia-Pacific/NNP earnings/NNS because/IN the/DT roughly/RB $/$ 1.5/CD billion/CD in/IN goodwill/NN --/: the/DT amount/NN by/IN which/WDT the/DT bid/NN exceeds/VBZ Nekoosa/NNP 's/POS book/NN value/NN of/IN $/$ 1.5/CD billion/CD --/: will/MD have/VB to/TO be/VB subtracted/VBN from/IN earnings/NNS over/IN a/DT period/NN of/IN decades/NNS ./. 
Georgia-Pacific/NNP 's/POS Mr./NNP Hahn/NNP said/VBD that/IN a/DT combined/VBN operation/NN would/MD allow/VB savings/NNS in/IN many/JJ ways/NNS ./. 
The/DT two/CD companies/NNS each/DT produce/NN market/NN pulp/NN ,/, containerboard/NN and/CC white/JJ paper/NN ./. 
That/DT means/VBZ goods/NNS could/MD be/VB manufactured/VBN closer/JJR to/TO customers/NNS ,/, saving/VBG shipping/VBG costs/NNS ,/, he/PRP said/VBD ./. 
Moreover/RB ,/, production/NN runs/VBZ would/MD be/VB longer/RB ,/, cutting/VBG inefficiencies/NNS from/IN adjusting/VBG machinery/NN between/IN production/NN cycles/NNS ./. 
And/CC Georgia-Pacific/NNP could/MD save/VB money/NN in/IN selling/VBG pulp/NN ,/, because/IN the/DT company/NN uses/VBZ its/PRP$ own/JJ sales/NNS organization/NN while/IN Nekoosa/NNP employs/VBZ higher-cost/JJ agents/NNS ./. 
Mr./NNP Hahn/NNP said/VBD Georgia-Pacific/NNP has/VBZ accounted/VBN in/IN its/PRP$ strategy/NN for/IN a/DT ``/`` significant/JJ downturn/NN ''/'' in/IN the/DT pulp/NN and/CC paper/NN industry/NN ,/, an/DT event/NN that/IN he/PRP said/VBD would/MD temporarily/RB dilute/VB earnings/NNS ./. 
But/CC he/PRP said/VBD that/IN even/RB under/IN those/DT conditions/NNS ,/, the/DT company/NN still/RB would/MD realize/VB a/DT savings/NNS of/IN tens/NNS of/IN millions/NNS of/IN dollars/NNS in/IN the/DT first/JJ year/NN following/VBG a/DT merger./CD ``/`` The/DT fit/NN is/VBZ so/RB good/JJ ,/, we/PRP see/VBP this/DT as/IN a/DT time/NN of/IN opportunity/NN ,/, ''/'' he/PRP said/VBD ./. 
Georgia-Pacific/NNP ,/, which/WDT has/VBZ suspended/VBN its/PRP$ stock-repurchase/JJ program/NN ,/, would/MD finance/VB the/DT acquisition/NN with/IN all/DT bank/NN debt/NN ,/, provided/VBN by/IN banks/NNS led/VBN by/IN BankAmerica/NNP Corp./NNP Georgia-Pacific/NNP owns/VBZ 349,900/CD Nekoosa/NNP shares/NNS and/CC would/MD need/VB federal/JJ antitrust/JJ clearance/NN to/TO buy/VB more/JJR than/IN $/$ 15/CD million/CD worth/JJ ./. 
U.S./NNP clearance/NN also/RB is/VBZ needed/VBN for/IN the/DT proposed/VBN acquisition/NN ./. 
For/IN Nekoosa/NNP ,/, defense/NN options/NNS may/MD be/VB undercut/VBN somewhat/RB by/IN the/DT precarious/JJ state/NN of/IN the/DT junk-bond/NN market/NN ,/, which/WDT limits/VBZ how/WRB much/JJ value/NN the/DT target/NN could/MD reach/VB in/IN a/DT debt-financed/JJ recapitalization/NN ./. 
The/DT company/NN 's/POS chairman/NN ,/, Mr./NNP Laidig/NNP ,/, and/CC a/DT group/NN of/IN advisers/NNS met/VBD at/IN the/DT offices/NNS of/IN Wachtel/NNP Lipton/NNP Rosen/NNP &/CC Katz/NNP ,/, a/DT law/NN firm/NN specializing/VBG in/IN takeover/NN defense/NN ./. 
Nekoosa/NNP also/RB is/VBZ being/VBG advised/VBN by/IN Goldman/NNP ,/, Sachs/NNP &/CC Co/NNP ./. 
Georgia-Pacific/NNP 's/POS advisers/NNS are/VBP Wasserstein/NNP ,/, Perella/NNP &/CC Co./NNP ,/, which/WDT stands/VBZ to/TO receive/VB a/DT $/$ 15/CD million/CD fee/NN if/IN the/DT takeover/NN succeeds/VBZ ,/, and/CC the/DT law/NN firm/NN of/IN Shearman/NNP &/CC Sterling/NNP ./. 
People/NNS familiar/JJ with/IN Nekoosa/NNP said/VBD its/PRP$ board/NN is/VBZ n't/RB likely/JJ to/TO meet/VB before/IN the/DT week/NN after/IN next/JJ to/TO respond/VB to/TO the/DT bid/NN ./. 
The/DT board/NN has/VBZ 10/CD business/NN days/NNS to/TO respond/VB ./. 
In/IN addition/NN to/TO the/DT usual/JJ array/NN of/IN defenses/NNS ,/, including/VBG a/DT so-called/JJ poison/NN pill/NN and/CC a/DT staggered/VBN board/NN ,/, Nekoosa/NNP has/VBZ another/DT takeover/NN defense/NN :/: a/DT Maine/NNP state/NN law/NN barring/VBG hostile/JJ bidders/NNS from/IN merging/VBG acquired/VBN businesses/NNS for/IN five/CD years/NNS ./. 
Nekoosa/NNP is/VBZ incorporated/VBN in/IN Maine/NNP ./. 
Georgia-Pacific/NNP has/VBZ filed/VBN a/DT lawsuit/NN in/IN federal/JJ court/NN in/IN Maine/NNP challenging/VBG the/DT poison/NN pill/NN and/CC the/DT Maine/NNP merger/NN law/NN ./. 
Nekoosa/NNP 's/POS poison/NN pill/NN allows/VBZ shareholders/NNS to/TO vote/VB to/TO rescind/VB it/PRP ,/, but/CC Georgia-Pacific/NNP is/VBZ n't/RB likely/JJ to/TO pursue/VB such/JJ a/DT course/NN immediately/RB because/IN that/DT would/MD take/VB 90/CD to/TO 120/CD days/NNS ,/, and/CC would/MD n't/RB affect/VB the/DT provisions/NNS of/IN the/DT Maine/NNP law/NN ./. 
Among/IN companies/NNS mentioned/VBN by/IN analysts/NNS as/IN possible/JJ counterbidders/NNS for/IN Nekoosa/NNP are/VBP International/NNP Paper/NNP ,/, Weyerhaeuser/NNP ,/, Canadian/NNP Pacific/NNP Ltd./NNP and/CC MacMillan/NNP Bloedel/NNP Ltd./NNP ``/`` I/PRP 'm/VBP sure/JJ everybody/NN else/RB is/VBZ putting/VBG pencil/NN to/TO paper/VB ,/, ''/'' said/VBD Kathryn/NNP McAuley/NNP ,/, an/DT analyst/NN with/IN First/NNP Manhattan/NNP Co/NNP ./. 
International/NNP Paper/NNP and/CC Weyerhaeuser/NNP declined/VBD to/TO comment/VB ./. 
Canadian/NNP Pacific/NNP could/MD n't/RB be/VB reached/VBN for/IN comment/NN ,/, and/CC MacMillan/NNP Bloedel/NNP said/VBD it/PRP has/VBZ n't/RB any/DT plans/NNS to/TO make/VB a/DT bid/NN for/IN Nekoosa/NNP ./. 
Investors/NNS were/VBD quick/JJ to/TO spot/VB other/JJ potential/JJ takeover/NN candidates/NNS ,/, all/DT of/IN which/WDT have/VBP strong/JJ cash/NN flows/NNS and/CC low-cost/JJ operations/NNS ./. 
Among/IN paper/NN company/NN stocks/NNS that/WDT rallied/VBD on/IN the/DT Big/NNP Board/NNP because/IN of/IN the/DT offer/NN were/VBD Union/NNP Camp/NNP ,/, up/IN $/$ 2.75/CD to/TO $/$ 37.75/CD ,/, Federal/NNP Paperboard/NNP ,/, up/IN $/$ 1.75/CD to/TO $/$ 27.875/CD ,/, Mead/NNP ,/, up/IN $/$ 2.375/CD to/TO $/$ 38.75/CD ,/, and/CC Temple/NNP Inland/NNP Inc./NNP ,/, up/IN $/$ 3.75/CD to/TO $/$ 62.25/CD ./. 
In/IN over-the-counter/JJ national/JJ trading/NN ,/, Bowater/NNP Inc./NNP jumped/VBD $/$ 1.50/CD to/TO $/$ 27.50/CD ./. 
Some/DT analysts/NNS argued/VBD that/IN there/EX wo/MD n't/RB be/VB a/DT flurry/NN of/IN takeovers/NNS because/IN the/DT industry/NN 's/POS continuing/VBG capacity-expansion/JJ program/NN is/VBZ eating/VBG up/IN available/JJ cash/NN ./. 
Moreover/RB ,/, some/DT analysts/NNS said/VBD they/PRP expect/VBP a/DT foreign/JJ paper/NN company/NN with/IN deeper/JJR pockets/NNS than/IN Georgia-Pacific/NNP to/TO end/VB up/IN acquiring/VBG Nekoosa/NNP ,/, signaling/VBG to/TO the/DT rest/NN of/IN the/DT industry/NN that/IN hostile/JJ bids/NNS are/VBP unproductive/JJ ./. 
``/`` This/DT is/VBZ a/DT one-time/JJ event/NN ,/, ''/'' said/VBD Lawrence/NNP Ross/NNP of/IN PaineWebber/NNP Inc./NNP ,/, referring/VBG to/TO the/DT Georgia-Pacific/NNP bid/NN ./. 
But/CC many/JJ analysts/NNS believe/VBP that/IN ,/, given/VBN the/DT attractiveness/NN of/IN paper/NN companies/NNS '/POS cash/NN flows/NNS ,/, as/RB well/RB as/IN the/DT frantic/JJ consolidation/NN of/IN the/DT paper/NN industry/NN in/IN Europe/NNP ,/, there/EX will/MD be/VB at/IN least/JJS a/DT few/RB more/RBR big/JJ hostile/JJ bids/NNS for/IN U.S./NNP companies/NNS within/IN the/DT next/JJ several/JJ months/NNS ./. 
The/DT buyers/NNS ,/, these/DT analysts/NNS added/VBD ,/, could/MD be/VB either/DT foreign/JJ or/CC other/JJ U.S.concerns/NNS ./. 
``/`` The/DT Georgia-Pacific/NNP bid/NN may/MD open/VB the/DT door/NN to/TO a/DT new/JJ era/NN of/IN consolidation/NN ''/'' in/IN the/DT paper/NN industry/NN ,/, said/VBD Mark/NNP Devario/NNP of/IN Shearson/NNP Lehman/NNP Hutton/NNP Inc/NNP ./. 
``/`` I/PRP do/VBP n't/RB think/VB anyone/NN is/VBZ now/RB immune/JJ from/IN takeover/NN ,/, ''/'' said/VBD Robert/NNP Schneider/NNP of/IN Duff/NNP &/CC Phelps/NNP Inc./NNP ,/, Chicago/NNP ./. 
He/PRP added/VBD :/: ``/`` Every/DT paper/NN company/NN management/NN has/VBZ to/TO be/VB saying/VBG to/TO itself/PRP ,/, `/`` Before/IN someone/NN comes/VBZ after/IN me/PRP ,/, I/PRP 'm/VBP going/VBG to/TO go/VB after/IN somebody./JJ '/'' ''/'' 
Prudential-Bache/NNP 's/POS Mr./NNP Rodgers/NNP said/VBD he/PRP does/VBZ n't/RB see/VB the/DT industry/NN 's/POS capacity-expansion/JJ program/NN hindering/VBG takeover/NN activity/NN ./. 
Several/JJ projects/NNS ,/, he/PRP said/VBD ,/, are/VBP still/RB on/IN the/DT drawing/VBG board/NN ./. 
Moreover/RB ,/, ``/`` it/PRP 's/VBZ a/DT lot/NN cheaper/JJR and/CC quicker/JJR to/TO buy/VB a/DT plant/NN than/IN to/TO build/VB one/CD ./. ''/'' 
Indeed/RB ,/, a/DT number/NN of/IN analysts/NNS said/VBD that/IN Japanese/JJ paper/NN companies/NNS are/VBP hungry/JJ to/TO acquire/VB additional/JJ manufacturing/NN capacity/NN anywhere/RB in/IN the/DT world/NN ./. 
Some/DT predicted/VBD that/IN Nekoosa/NNP will/MD end/VB up/IN being/VBG owned/VBN by/IN a/DT Japanese/JJ company/NN ./. 
Meanwhile/RB ,/, Shearson/NNP Lehman/NNP 's/POS Mr./NNP Devario/NNP said/VBD that/IN ,/, to/TO stay/VB competitive/JJ ,/, the/DT U.S./NNP paper/NN industry/NN needs/VBZ to/TO catch/VB up/IN with/IN the/DT European/JJ industry/NN ./. 
Since/IN the/DT most-recent/JJ wave/NN of/IN friendly/JJ takeovers/NNS was/VBD completed/VBN in/IN the/DT U.S./NNP in/IN 1986/CD ,/, there/EX have/VBP been/VBN more/JJR than/IN 100/CD mergers/NNS and/CC acquisitions/NNS within/IN the/DT European/JJ paper/NN industry/NN ,/, he/PRP said/VBD ./. 
