Louisiana-Pacific takeover of Ainsworth Lumber falls apart

Wed May 14, 2014 3:58pm EDT
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May 14 (Reuters) - Louisiana-Pacific Corp has backed away from its planned takeover of Ainsworth Lumber Co, blaming the split on demands for more asset sales from Canadian and U.S. regulators, the companies said on Wednesday.

Tennessee-based Louisiana-Pacific said last September it would buy its Canadian peer for about $1.1 billion, including debt, in a push to expand into Asia and other international markets.

The news sent Ainsworth's shares down 9.3 percent to C$3.13 on the Toronto Exchange, while Louisiana-Pacific's stock fell 4.6 percent to $15.13 on the New York Stock Exchange. (Reporting by Julie Gordon, editing by G Crosse)