By GEOFF SENESCALL
Due diligence on Fletcher Paper ended on Friday with formal offers expected to be made shortly.
The company would say only that it was still on track for a second-quarter announcement, which gives it until the end of June.
Four parties are understood to have started the due diligence process
though it is not certain how many of them completed it.
Market speculation is that several parties put firm offers on the table before the process was completed.
An announcement was expected by the market sooner rather than later. Certainly there was some anticipation of this with the Paper share price rising a further 2c to 137c on Friday.
Resolving what to do with the debt-burdened Paper asset is the linchpin to restructuring plans of Fletcher Challenge's other three divisions.
The possibility of an outright sale of the business as an option comes after minority shareholders in Paper's subsidiary, Fletcher Canada, scuttled a $C3.6 billion ($5 billion) merger proposal late last year. The plan had been the preferred option of Fletcher management.
Investment bank Credit Suisse First Boston is continuing to handle the Paper restructuring for Fletcher Challenge.
However, if the offers do not match expectations, then other options for the company are to make a share placement, recapitalise the balance sheet and spin off assets.
