Sep 15, 2005. /Lesprom Network/. Carter Holt Harvey Ltd., the biggest lumber maker in Australia and New Zealand, said a $2.3 billion takeover offer from billionaire Graeme Hart's Rank Group is too low and advised shareholders to reject it. The NZ$2.50-a-share ($1.8) offer is “below fair value” based on a Grant Samuel & Co. appraisal which valued the stock between NZ$2.55 and NZ$2.95 ($1.80-2.09), Auckland-based Carter Holt said in a statement to the New Zealand stock exchange. International Paper Co., North America's biggest paper maker, has already agreed to sell its 50.5% stake in Carter Holt to Rank, Hart's investment company. Carter stock reached NZ$2.62 ($1.9) last month as investors bought shares betting Hart will make more money by breaking up and selling the company's forests, sawmills and paper plants. “That's the only way you get value,'' said Stephen Walker, managing director of Walker Capital Management Ltd., which has the equivalent of $155 million in New Zealand shares and holds Carter stock. “His motivation is the same as ours and most of the holders who have joined the register in recent months,'' he said. Walker doesn't plan to sell his Carter Holt shares to Rank. A price of NZ$2.50 may be acceptable if the business was being kept intact “but when you look at it and pull it apart'' it is worth more, he said. “If Rank wanted 100% they would have to pay more,” Mr. Walker said. Rank Group won't make a statement today about Carter Holt's assessment of the bid, said Anita Busby, a public relations adviser retained by Hart's company. Carter Holt operates sawmills and board plants in New Zealand, China and Australia. It is the biggest forest owner in New Zealand and the largest maker of wood pulp there and in Australia.