Graeme Hart's Rank Group now holds 72.27 per cent of takeover target Carter Holt Harvey, according to a substantial shareholder notice filed to the Stock Exchange this morning.
The notice shows Mr Hart - New Zealand's richest man - is creeping closer to a full takeover, after his $2.50 ashare bid was given the green light by Carter Holt's independent directors.
Institutional shareholders are expected to put up some resistance, but "Ma and Pa" retail investors are likely to cash in their chips after the three independent directors signalled they have lost confidence in management forecasts.
Carter Holt last week downgraded its full year earnings forecast to $200 million, the third revision in recent months.
Shares in Carter Holt were trading at $2.51 this morning, just above Mr Hart's offer price, which values the company at $3.3 billion.
A 75 per cent stake would allow Rank to undertake certain transactions without referral to other shareholders, while a 90 per cent stake would enable Rank to compulsorily mop up all minority shareholdings.
