Forestry dispute rolls on amid FFS sale rumours

By Phil Boeyen, ShareChat Business News Editor

Friday 18th August 2000

Chinese-owned CITIC New Zealand is calling attention once again to its dispute with Fletcher Forests amid market speculation that a sale of the company is imminent.

Echoing earlier announcements, CITIC spokesman, Greg Molloy, says no real progress has been made in resolving the protracted dispute between Fletcher and CITIC in relation to the Central North Island Forestry Partnership.

"While we have been continuing to negotiate with Fletcher over past months we are disappointed at progress. None of the disputes we have with Fletcher have been resolved including that in relation to the supply of pulpwood to Norske Skog. The Central North Island Forestry Partnership is now in the position of supplying pulpwood without a contract.

Mr Molloy says CITIC's High Court action to resolve the dispute continues on schedule, with court hearing scheduled for September 19th.

Fletcher Forests see-sawing share price fell back Friday after plenty of rumours but little fact that a deal was in the making to sell the company. The last time the shares spiked was around a month ago after speculation that the dispute with CITIC had been resolved.

FFS closed down 2 cents Friday at 88 after topping 92 cents in early trading.

Comments from our readers

No comments yet