CHH gains Wadepack's blessing

Carter Holt Harvey says Australian packaging company Wadepack's board has accepted its takeover bid.

Carter Holt is offering A$2.70 ($2.96) a share for Wadepack.

The entire board, including managing director and 40 per cent shareholder Ashod Nassibian, had accepted the offer, the company said yesterday.

The takeover won Australian regulatory approval last month.

Carter Holt's pulp, paper and packaging chief executive, Rhys Jones, said Nassibian's acceptance was "a significant step in the bid", which is due to close on February 18.

The offer consists of A$2.60 cash a share and two 5Ac a share dividends and is conditional on acceptances totalling at least 90 per cent of Wadepack's stock.

Acceptances for the A$85 million bid totalled 66 per cent on Tuesday, Carter Holt said.

It is expected to post reduced fourth-quarter earnings tomorrow, with trading affected by the strong kiwi dollar, lower pulp prices and a building slowdown.

Carter Holt shares closed 2c lower yesterday at $2.08.

- NZPA