Stamp of approval for forest takeover

By PAULA OLIVER

Carter Holt Harvey last night won Commerce Commission approval to buy the Central North Island Forestry Partnership, amid market rumours that it was considering a joint venture with Fletcher Challenge Forests and another party to bid for the estate.

The commission's approval is subject to Carter Holt selling some assets, but what they are remains confidential.

The 190,000ha estate, which takes in the Kaingaroa forest, went into receivership in February when owners Fletcher Forests and Citic failed to combat low log prices.

Receiver Michael Stiassny has said that the asset would be put to an international tender, but pressure was put on him this week when unconfirmed reports suggested that Chinese Government-owned Citic had made a pre-emptive and unconditional bid.

Carter Holt chief executive Chris Liddell said last night that his company was interested in the potential of the assets and wanted to ensure that their future management helped the local industry.

But he said the company did not have a plan to own them.

A thawing in relations between Fletcher Forests and Carter Holt has been evident as talk of a joint marketing arm heats up.