gns ripe for takeover

From the general Morningstar website:
Gunns ripe for takeover

Gunns (GNS) is getting a good price for its retail hardware business in Tasmania, a Morningstar analyst said. Gunns has agreed to sell the non-core business to the hardware joint venture between Woolworths (WOW) and US-based Lowe's for $40 million. The acquisition is neither here nor there for the joint venture partners but it gives Gunns some relief from its massive debt, the analyst said. After the divestment, Gunns' stable of non-core assets will hold its wine and construction business, as well as 28,000 hectares of native forest land. The analyst said Gunns' position is similar to that of takeover target Sigma Pharmaceuticals (SIP). "If incumbent management can't make a return on the assets, someone else will"

Hold GNSPA only.