Rank's 75pc boosts Hart's sway over CHH

Graeme Hart's Rank Group has reached a new level of control over Carter Holt Harvey with its stake going past 75 per cent last night.

At 75 per cent, Hart will be in a position to pass significant constitutional changes to the forest products company without the support of the other shareholders.

These could include increasing the levels of debt the company is allowed to take on or the extent to which capital could be returned to shareholders.

Hart has already committed to taking over 100 per cent of CHH and is offering $2.50 a share. If he reaches 90 per cent he can compulsorily acquire the outstanding shares.

Meanwhile, Hart has been hinting that his Australasian food group, Goodman Fielder, could be snapped up by private buyers before it makes it to a public float this year.

Big private equity groups like Pacific Equity Partners and The Carlyle Group were yesterday being talked about as those likely to be in "active discussions" with Hart about the trade sale of Goodman Fielder.

"It's probably going to be down to the usual suspects," said one analyst, who asked not to be named.

Nestle has been touted as a potential buyer for Burns Philp's snacks division - which is not scheduled to be floated - but analysts say the Swiss giant is less likely to be interested in the rest of Goodman, which is primarily in the slower-growth ingredients segment of the food sector.

Other big international food groups that may be interested include Unilever and Associated British Foods.

But analysts say it is private equity groups that are most likely to have the stomach for a stable but relatively undynamic Australasian food business.

In 2003, when Goodman Fielder was last up for grabs, a partnership between US food and drinks group Pepsico and Pacific Equity Partners was touted as Burns Philp's most likely rival bidder.