SPECULATION is growing that Gunns is in discussions to sell segments of its operation.
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The Launceston-based timber company has appointed advisers to fast-track a restructure of the business into four separate entities - the pulp mill, plantations, sawmilling and its other assets including Mitre 10, wine and construction.
Insiders said yesterday that Gunns would be looking at all options following a 98 per cent profit drop for the first half and continued struggles to finance its controversial pulp mill.
One analyst said that businesses were always for sale - it was just a matter of the right price being offered.
The Mitre 10 hardware stores appear the most likely takeover target after recording a "significant increase in turnover and earnings", according to Gunns' half-year report.'
The wine business - Tamar Ridge and Coombend - continued to perform well despite the price of the Australian dollar leading to reduced export sales and may also be disposed of.
In February, a spokesman for the company denied speculation that it would sell off one of the assets.
The spokesman yesterday would not comment on Gunns' operations, other than to say an update on the company's restructure plans was due to be released to the Australian Securities Exchange late next month.
Gunns' share price closed down 2.8 per cent yesterday at 51 cents.