Fletcher Forests gains $1.8 million silver lining

The company has reaped $1.8 million in foreign exchange from a hedge contract it entered into, in case the $1.4 billion deal should proceed.

The contract was a cancellable forward exchange contract to buy $US250 million at a rate of US46.50c.

Forests chief financial officer John Dell said the gain would go a long way to offsetting the legal, accounting, advertising and mailout costs incurred in setting up the shareholder vote.

He said the costs were still being totalled up, but estimated they would be around $3 million to 4 million.

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