CHH adjustments take effect in a week

An estimated 1 to 1.5 per cent of Carter Holt Harvey shares will be sold on to the sharemarket as a result of an NZX index adjustment disclosed last night.

The changes - due to take effect on December 1 - reflect a reduction in the free float of the stock after billionaire Graeme Hart's $3.3 billion takeover bid for the forestry giant.

The readjustment could play into Hart's hands as it might increase selling pressure on the stock. He already has almost 76 per cent of CHH's shares.