Black Tree suspends Gt Southern proposal

The battle for the Great Southern timber schemes is now a one horse race with the Tony Jack-led Black Tree suspending its proposal.

In a letter sent to investors on Wednesday, Black Tree executive chairman Mr Jack said while the company remained ready for the receivers of Great Southern to take its proposal to a meeting of growers, it believed that "forces aligned against us make an independent meeting unpractical and unlikely to succeed".

Yesterday, the Gordon Martin-led Pulpwood Plantations withdrew its bid after earlier in the week saying proxy support indicated its bid would be unsuccessful.

The quick change in events this week leaves one active bid in the market, Gunns, which will put its proposal up for an investors, or growers, vote on December 23.

Gunns will still need more than 50 per cent of total growers' votes and a show of support at the meeting to takeover over the timber schemes. The Tasmanian company can rely on receivers McGrathNicol voting its stake - of up to 27 per cent in some of the timber schemes - after it was nominated as the receiver's preferred bidder.

Mr Jack said in the letter that Black Tree was prepared to work with the Great Southern receivers to find a solution for the schemes should Gunns' proposal be rejected at the meeting.