By CHRIS DANIELS
Bidders for New Zealand's largest forest are poring over the books this month, looking for ways of making a dollar where others have failed.
Fletcher Challenge Forests, Citic, Carter Holt Harvey and US forestry investor Hancock have all made it through to the second round of bidding for
the assets of the Central North Island Forestry Partnership.
The partnership went into receivership early this year, and the relationship between the partners - Fletcher Challenge Forests and Citic of China - became increasingly acrimonious.
It is understood Fletcher Challenge Forests spent last week conducting due diligence, and Citic is looking over the books this week.
They will be followed by Carter Holt Harvey, then Hancocks.
Industry sources say the Carter Holt bid involves paying no cash, but offering its own forests as equity in a new partnership.
Although the Carter Holt offer and the Fletcher bids are said to be entirely separate offers, there is speculation that once due diligence is complete, they may try to form some kind of joint partnership.
Fletcher is thought to not have enough money to make a realistic bid, so a partner such as Carter Holt, might be sought further into the bidding process. Fletcher representatives said in July that they were talking to "several parties".
US forestry giant Hancock Timber Resource Group describes itself as "the world's leading forest and agricultural investment management organisation for institutional investors".
In March, the timberland it managed in the US, Canada and Australia was worth $US2.7 billion ($6.5 billion).
