Georgia-Pacific May Be Willing to Divest Sizable Production Capacity to Secure Fort James

Georgia-Pacific Corp. (GPC) is so determined to secure the U.S. retail business of Fort James Corp., it may go so far as to divest up to 500,000 tons of production capacity and one of its top six mills if the Department of Justice asks it to, said one analyst. Chip Dillon, of Salomon Smith Barney, said Atlanta-based, $3.6 billion market cap GPC’s first offer was to divest 250,000 tons, including four tissue mills, four converting plants and three pulp mills. But that number has already climbed to 292,000 and under the DOJ’s pressure, it may climb more, he said.