Change of heart on Gunns bid
Friday 24 Aug 2007
In a surprise move late last week, timber company Auspine's board recommended that its shareholders consider the AU$330 million takeover bid from Tasmanian company, Gunns. A one week extension on the AU$6.15 offer was sought after the original offer was due to expire on Friday. Earlier in the week the company had made a statement that the Gunns' offer was inadequate and anyone who sold to Gunns would miss out on a 12c dividend. Auspine Directors in a statement to the stock exchange on Friday said that Auspine Shareholders should consider the offer because of the softening market and volatility seen in the global share-market last week. Gunns has since increased its share in Auspine from 33.5% to just under 50% and Auspine says the Tasmanian timber company Gunns could take a seat on its board now that its the major shareholder.
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