Shares in timber company Gunns have been placed in a trading halt, with the company expected to make an announcement in relation to capital raising and equity investment.
The Australian Securities Exchange has just announced that Gunns shares have been placed in trading halt at the request of the company.
Gunns says it expects to make the announcement before the trading halt is lifted on Wednesday morning.
Shadforth Financial Group's Launceston manager Chris Elliot said the announcement was likely to be a precursor to securing a joint venture partner for the$2.2 billion Tamar Valley pulp mill.
''There's nothing really left for Gunns. It's not an asset sale, we know their finances have been sorted out,'' Mr Elliot said.
''It's really a capital raising and equity investment that you would suspect is associated with the final stages of the process to secure a joint venture partner for the pulp mill.''
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