Gunns misses out on Timbercorp assets

Woodchip producer Gunns Ltd has missed out in its bid to acquire forestry assets
from collapsed agricultural projects firm Timbercorp Ltd.
Gunns has also long propsed to build and operate a $2 billion pulp mill at Bell Bay
in the north of Tasmania.
When Gunns announced its after tax profit of $56 million this year, the company also
revealed plans to secure timber to ensure the pulp mill would be 100 per cent
plantation-based.
Gunns announced on Monday it had submitted a conditional proposal to Timbercorp's
liquidator to buy the Timbercorp forestry assets, but said in a statement on Friday
it had not been successful.
"Gunns Limited has been advised that it has not been selected as the preferred
bidder by the liquidator of Timbercorp Limited (in liquidation) in relation to its
conditional proposal for the acquisition of Timbercorp forestry assets," it said.
"Gunns will continue to assess opportunities to participate in the consolidation of
the Australian forestry sector," Gunns said in a statement on Friday after the close
of share market trading.
Gunns, Australia's largest integrated hardwood and softwood forest products company,
said on Monday that it had talked to potential financiers and a joint-venture
partner in relation to the potential acquisition of the Timbercorp forestry assets.
As long ago as June, Gunns chairman, John Gay wrote a letter to the then
administrator of Timbercorp expressing interest in obtaining some of the failed
company's plantation assets.
About 10,000 people invested $800 million in Timbercorp's forestry schemes before it
went into administration in April.
In June, Timbercorp creditors voted to have 41 companies within the group wound up
after liquidators said they were hopelessly insolvent.
Timbercorp also operated managed investments schemes that grew almonds, olives,
mangoes, avocados, citrus and table grapes.
Gunns shares were 2.5 cents higher at $1.325 on Friday.