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Gunns shares on hold

SHARES in Gunns have been suspended from trading while the woodchipper considers the implications of the $276 million forestry agreement signed between the Tasmanian and federal governments.

SHARES in Gunns have been suspended from trading while the woodchipper considers the implications of the $276 million forestry agreement signed between the Tasmanian and federal governments.

Gunns requested the suspension yesterday, after the shares went into a trading halt on Thursday. The Tasmanian and federal governments announced the signing of the intergovernmental agreement on Sunday.

"The company is unable at this time to provide further clarity to the market in respect of the agreement and accordingly has sought a suspension of trading," Gunns said.

"The implementation of this agreement has potential material implications for the company."

Gunns said it was likely to have talks with the Tasmanian government over implementation of the agreement and would provide clarity to the market.

Gunns expects to provide the market with a further update this week. Gunns shares last traded at 20.5?.

Prime Minister Julia Gillard announced the deal on Sunday, which was based on a statement of principles signed last year by industry groups, environmentalists and the Construction, Forestry, Mining and Energy Union.

The intergovernmental agreement includes $85 million to support contractors and their families affected by the downturn and $43 million to protect new areas of high conservation value forests.


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