TIMBERCORP and Great Southern forestry assets could be snapped up by Tasmanian timber company Gunns.
And Gunns is poised to become an even bigger player in the timber game, after announcing on Monday its acquisition of ITC Timber from Elders for $100 million.
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The ITC Timber deal will be financed through a $145 million capital raising.
Gunns has always held an interest in Timbercorp and Great Southern assets, and media reports this week indicate Gunns may enter a joint venture in order to buy them.
This move would provide surety to landowners in the southwest and Green Triangle regions of Victoria, after months of uncertainty when both managed investment groups went into voluntary administration in April.
"Gunns is actively working on proposals to play a key role in the ongoing operation of assets presently managed by Timbercorp and Great Southern Plantations," Gunns said on Monday when announcing the company's annual results.
However, Timbercorp spokesman Matt Trewin said there were 20 interested parties bidding on Timbercorp's assets, with bidding for assets closing on September 18.
"As far as I know the liquidators haven't received an early bid," Mr Trewin said.
Timbercorp liquidators Korda Mentha were also keen to stress the process was far from over.
"There is still a fair way to go (until bids close on September 18), and I can't comment any further," Korda Mentha spokesman Mike Smith said.
Gunns already manages 200,000 hectares of Australian hard and softwood plantations and stands to double that area of trees if it secures Timbercorp and Great Southern's forest assets.
"Gunns is well positioned to capitalise on opportunities that may become available, and is assessing several opportunities to diversify and expand its forestry operations," Gunns chairman John Gay said.
Gunns net profit after tax declined 4.9 per cent to $56.2 million with total earnings down 10.9 per cent to $769.34 billion.
Mr Gay said the restructure of the MIS sector was generating opportunities for the expansion of Gunns' forestry interests.
The ITC forestry and managed funds divisions have not been sold.
