vote no for gunns, page-4

Published 8:08 PM, 10 Dec 2009
Last update 8:10 PM, 10 Dec 2009
Gunns urges Great Southern to accept proposal, as other bidders pull out
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Timber company Gunns Ltd has encouraged grower-investors in Great Southern to vote for its proposal to take over the bulk of the collapsed agribusiness company's pulpwood projects, after the last rival offer, from Pulpwood Plantations Pty Ltd, was withdrawn.

With PPPL withdrawing their offer due to low levels of proxy support, Gunns' proposal is the only remaining offer that will enable growers to maintain the project, and as a result has been recommended by the receiver McGrath Nichol.

Gunns Chief executive officer Greg L’Estrange said that with the withdrawal of PPPL, and the suspension yesterday of a proposal by Black Tree Ltd, the offer now needs the support of more than 50 per cent of Great Southern shareholders to back the scheme.

“There is no guarantee that growers will receive any proposal in the future if this offer is not approved," he said.

Earlier this week, Independent research company Adviser Edge reaffirmed its support for Gunns proposal to take over the project, after last week's rival bid from Black Tree.