Wednesday, May 26, 2010

UBS says 'Gunns Pulp Mill a long shot'.....SMH says "internal" brawling at Gunns......OZ says Gunns "trashed"

The news just gets better and better for everyones favourite logging company. See links below

......"Mr Eastment said there was an internal struggle in the company not unlike the factional dispute tearing apart Gunns's nemesis, The Wilderness Society.

He said ''old-guard'' board members were fighting against new management led by chief executive Greg L'Estrange"

and from the OZ......

and from Business Spectator.........................
........"Things have been difficult for the Tasmanian timber group Gunns since its major banker, ANZ Banking Group, declined to fund its flagship pulp mill in Tasmania. Investors have grown impatient over the years as alternative funding failed to emerge (albeit in tricky conditions). Then there’s been concerns over Gunns’ debt load, anaemic Asian pulp demand, managed investment scheme troubles and a class action in regards to its disclosure over a profit slump – negative sentiment pushed Gunns shares to a record low of 26.5 cents yesterday, with some speculating it will exit the S&P/ASX200 altogether and rumours about its demise as an independent company gathering pace. On the plus side, Gunns has announced some steps on board renewal, non-core asset sales are underway, Deutsche values it at 60 cents per share and its Japanese customers have been granted Forest Stewardship Council “controlled wood status” for wood chips sourced from parts of Tassie".

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