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News National Rural News Forestry General Gunns may add surprise to results Gunns may add surprise to results
17 Feb, 2010 01:35 PM
MARKET rumours are swirling about what's next on Gunns' agenda.

The Australian Financial Review reports a deal of some sort is on the cards for Monday, when the company releases its half-year results, which have been brought forward by a few days and are expected to be poor given the woodchip environment.


Some speculators believe Gunns, advised by Credit Suisse, may pull the trigger on another capital raising, while others say an asset sale may be on the boil (Gunns chief executive Greg L'Estrage denied both to the AFR).


L'Estrange also said there was not a GMO Renewable Resources type transaction on the cards. In 2008, Gunns sold three-quarters of the pine plantations formerly owned by Auspine to US-based investment company, GMO Renewable Resources for $175 million.

Gunns kept the freehold over the land but bought the timber back to process in its Victorian and South Australian mills.


Others suspect there may be a direct investment in the timber giant, or a direct investment from an outside party in the company's assets.




The Australian Financial Review
Source: http://www.afr.comRELATED COVERAGE07 Feb 10: Legal threat to Wilderness Society plans for debate05 Jan 10: Gunns wins pulpwood schemes12 Feb 10: