Hold on Gunns

[Gunns]

http://news.ninemsn.com.au/article.aspx?id=83237

I will fix these fookers for not letting me buy there company!

[Sundeep]

Arrgghhh I'm sick of these threads one was enough :P

Sundeep

[Redrum]

Link doesn't work, what is this thread about?

[uranium_death]

Hold on Gunns, Auspine shareholders told
Wednesday May 16 18:34 AEST

Timber products firm Auspine Ltd has advised shareholders not to take any action yet concerning a proposed $332 million takeover bid by forestry company Gunns Ltd.

"Once Gunns' proposal is received (expected by June 30, 2007) and directors have had an opportunity to assess that proposal, a further announcement will be made," Auspine chairman Paul Teisseire said.

"In the meantime, shareholders are advised to take no action in relation to the Gunns announcement."

Gunns is planning to snap up Auspine in a deal worth $332 million, after acquiring an initial 25 per cent stake, in a bid to further expand its operations beyond Tasmania.

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JP Morgan analyst Alexander Mees said in a research note that the acquisition of Auspine would allow Gunns to diversify its business by product and geography.

Gunns is a hardwood business operating predominantly in Tasmania, whereas Auspine is a softwood company operating mainly in South Australia and Victoria.

Mr Mees said that if Gunns took over Auspine, about 75 per cent of the combined entity's forestry earnings, excluding managed investment schemes, would come from hardwood and 25 per cent from softwood.

The acquisition of Auspine would give Gunns strategically important land and sawmilling assets and lock in a source of softwood supply for Gunn's proposed pulp mill in northern Tasmania.

Auspine owns or operates more than 40,000 hectares of softwood plantations.

Mr Mees said Auspine's exposure to domestic residential construction would help Gunns lessen its reliance upon export markets.

Gunns proposes to offer $6.15 or 1.83 Gunns shares for each share in Auspine, the same price as that paid for the initial 25 per cent stake.

Auspine shareholders can choose between the cash and Gunns shares.

Gunns said on Tuesday it had acquired the 25 per cent stake, representing 24.8 million Gunns shares, for $83.2 million, from a group of Auspine shareholders.

The off-market acquisition of 100 per cent of Auspine would total $332 million or 99 million Gunns shares, including the cost of the initial stake.

Gunns said it would make a bid for the rest of Auspine within 30 days of concluding the 25 per cent acquisition.

Auspine shares rose four cents to $6.15 on Wednesday. Gunns fell two cents to $3.39.