In a surprise move, Wichita, KS-based Koch Industries, Inc. made a $48 a share bid for Georgia-Pacific, saying it would turn the Atlanta-based papermaker into a privately-held, whollyowned subsidiary. The price represents a 39% premium on G-P’s November 11 closing price.

The equity value was put at $13.2 billion with a total enterprise value of $21 billion including all G-P’s debt.

Georgia-Pacific will keep its name, stay headquartered in Atlanta and be run as an independently managed company, says Koch (pronounced “coke”).

The transaction includes all G-P’s assets including North American and international consumer products segments, building products, packaging and paper and bleached board.

Observers believe that the move will make G-P a more nimble operation, being relieved of much of the paperwork and regulation involved in being a public company.

Koch bought G-P’s non-integrated market and fluff pulp mills in New Augusta, MS, and Brunswick, GA, in May 2004 and operated them as Koch Cellulose. They will be re-integrated with G-P’s businesses. www.kochind.com; www.gp.com. PI