01.09.10. Weyerhaeuser, one of the world's largest lumber and wood products companies, said Wednesday it has paid a $5.6 billion special dividend.

The special dividend is a required step in the company's path to becoming a real estate investment trust -- a move that will lower its income taxes.

The dividend, which is payable to shareholders of record as of July 22, includes 324 million shares of common stock and $560 million in cash.

Weyerhaeuser Co. calculated the distribution based on a stock price of $15.54, the average closing price of the stock on Aug. 24, 25 and 26.

The dividend value per share is about $26.46 based on shares outstanding on July 22. Shareholders who elected to receive the special dividend in cash will receive approximately $4.03 per share in cash and 1.44340808 per share in stock. Those receiving the dividend in stock will receive 1.70292240 per share in stock. Weyerhaeuser said last month that a majority of its shareholders chose to receive their cut of the special dividend in cash.

The company's stock gained 62 cents, or 4 percent, to $16.32 in afternoon trading.

Business Week