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Article: Boise Learned The Folly of 'Vertical' Growth
- Article from:
- The Washington Post
- Article date:
- July 16, 2003
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Boise Cascade's $1.15 billion bid for OfficeMax signals that the
mergers-and-acquisition flimflam is back in vogue.
Until the market crash brought M&A activity to a halt, Boise
seemed to suffer from the corporate equivalent of attention deficit
disorder, buying and selling businesses, opening and closing
facilities, in a desperate effort to insulate itself from the wild
swings in lumber prices and to lock in higher profits and stock
multiples.
Under chief executive George Harad, Boise moved into and out of
various segments of the paper business, sold and then bought back a
minority stake in its office products division, paid its way into
European markets -- and then cashed out in favor of ...