David Leigh  

    16 June at 19:26 from atlas

    Gunns' shares dropped to 25.5 cents today June 16 and are now well below the price limit of 28 cents, the base set for hybrid shares raised 3 years ago. This capital represents a third of Gunns' book price and it may well show the end of an era. In 2004 Gunns' share value was $4.50. By late 2007 they had fallen to $3.50 now they are languishing at the bottom of the pit, with a steady decline daily. Today's announcement saw them fall from 29 cents, a fall of 12% in a single day. Asset stripping has not proved to be the windfall the company projected, with the Triabunna wood chip mill being sold for just 7 million, a far cry from the $25 million book price. Other assets have been closed, including two sawmills in Scottsdale. These were the spoils of a takeover bid for Auspine in 2007 and have since been systematically wound down, laying off 320 people. There will be many environmentalists and many working in the forest industry that will be glad to see this sorry chapter in Tasmania's history closed forever.


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