“Gunns is having discussions with a party concerning a possible acquisition and may conclude negotiations, which may potentially lead to an agreement, shortly,” the company said in its request to the ASX for a trading.

The company was due to release its annual results today, though now says it will release these in tandem with an acquisition announcement, which will come either later today or on Monday.

There is widespread speculation that the company will acquire the assets of one its timber industry rivals, such as Timbercorp or Great Southern. Just last month, Gunns revealed it had acquired a 17.9 per cent interest in the equity of Forest Enterprises Australia (FEA).

The company also announced last month that it had been selected as the preferred provider of a second hardwood chip facility at the Port of Portland in a boost for its Bell Bay pulp mill plans.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter