ACCC chairman Graeme Samuel said it was concerned that if Gunns took control of ITC Timber's 50 per cent stake in the SmartFibre wood chip joint venture, it would be likely to substantially lessen competition in the market for hardwood pulpwood in North East Tasmania.

Gunns said in a statement this afternoon that the attributed acquisition value of SmartFibre in the proposed transaction was $9.3 million and represented about 10 per cent of the total transaction.

The company said it was the intention of Gunns and Elders to exclude the 50 per cent stake in SmartFibre from the proposed transaction and to proceed with the balance of the original transaction.

The companies are seeking early confirmation that the ACCC has no objection to the revised transaction and are hpoing for an answer within a week.

Gunns raised $145 million through an equity raising offer to fund the purchase.

FULL REPORT IN THE EXAMINER TOMORROW