gunns debt plan under pressure

http://www.abc.net.au/news/stories/2008/09/18/2368001.htm?section=business

Gunns' debt plan under pressure
Posted 11 hours 33 minutes ago
Updated 11 hours 9 minutes ago

Gunns' shareprice has taken another tumble, putting in doubt its bid to raise up to $91 million from retail shareholders.

The timber company has already raised $336 million from institutional investors.

It is now offering its existing shareholders the opportunity to buy more shares.

Financial analyst, Tom Ellison says Gunns' share price has continued to fall due to the turmoil in the overall market.

He says it will make the success of the company's retail offer unlikely.

"The offer was pitched at a $1.50 a share," Mr Ellison said.

"Shares are trading at $1.10.

"It would be a very brave or a very foolish investor who was prepared to pay a $1.50 for shares that one can buy on the market for $1.10."

The retail offer closes next week.