Staff at CHH quietly cut ties

High-profile departures from Carter Holt Harvey since Graeme Hart made his $3.3 billion takeover bid are getting a public airing.

Yesterday, a day before Hart's bid for the forestry giant closes, the ex-chief executive of CHH panels, Ian Myers, disclosed he had sold his shares to Hart. The sales follow several notices by former executives disclosing they had cut their interest in the company. They include: former commercial director Maree Webster; the former head of CHH interiors division Andrew McKnoulty; former general manager of employment relations Paul Mackay and former chief operating officer Ian Unwin.

The reasons for the departures are not clear. CHH declined to comment, while the executives could not be contacted by press time.

But, since taking the control of the company, Hart has been taking a knife to CHH's costs, which has led to many redundancies. In early December, as many as 60 people were made redundant from the head office.

His actions follows precedents set at other acquisitions such as New Zealand Dairy Foods and Australian food business Burns Philp.

Hart has snared 86.57 per cent of the company with his $2.50 a share offer. However, odds on the billionaire getting much more are slim since the shares for much of this month have traded above the offer price. They closed last night down 1c at $2.57.

Hart, who has extended his bid for the company six times, last week said investors would have to make up their mind by today.

Observers have said the decision reflected a determination to call the bluff of those investors who believe he will pay more. He could leave the offer open until mid-February. But since CHH's shares are trading so high, small investors inclined to accept Hart's offer are more likely to accept offers on the open market.

Observers believe if Hart fails to get to 90 per cent, he will launch another offer perhaps later this year, when the high dollar and a housing downturn could weigh on CHH's earnings and investor sentiment.