Forum Archive Index - May 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

I have just received this message from ABN AMRO

The days press has considerable detail about Fletcher Paper's problems with
the
Chinese. The Chinese Government owned Citic is dragging its heels over the
existing multi-million dollar pulp contract with the Central North Islands
Partnership. The sale of Fletcher Paper is a key plank in the unwinding of
the
Fletcher Challange Group. In order to pacify the Chinese, the Fletcher group
may
agree to supply the wood pulp from Fletcher Forests and buy the remaining
wood
required to produce pulp on the open market. This means that Fletcher
Forests
will be supplying cheap subsidised timber, reducing its own asset base and
at a
considerable cost in administration and manpower. Bearing this in mind, it
now
seems unlikley that Fletcher Forests will obtain close to a dollar a share.

I therefore recommend selling Fletcher Forests now and reinvesting in
Fletcher
Building.

Fletcher Building (FLB)

I hope that Francis Salveson does not mind me sharing this and to be fair if
anybody makes a sell decision on the basis of this information the sale
should go through Francis at ABN AMRO Ph 09 358 7500, e-mail
Francis.Salvesen@au.abnamro.com


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