International Paper considering ‘alternatives’ to Carter Holt stake

Timber producer Carter Holt Harvey (CHH) said today that its biggest shareholder, International Paper, is reviewing its stake.

"CHH has been advised by its majority shareholder, International Paper, that it intends to explore strategic alternatives for its 50.5 per cent stake in CHH," the company said.

The review process is in its early stages, and will likely be completed by the end of the year.

"It is premature to speculate on any outcome, but CHH is committed to ensuring that the market is fully informed and maximising for all shareholders," CHH said.

CHH said it will be "business as usual" until then, and its current projects -- including the proposed sale of its non-strategic forests -- will continue.

It is selling a third of its forests by area and a quarter by value. Its total estate is worth $1.56 billion.

Shares in CHH were up 10c at $2.03 shortly after the opening of the market.

- NZPA