It is speculated that the timber company Gunns could be acquired if the company's share price lands to its record lows.

The company is a wholly-owned subsidiary of the home improvement joint venture between Woolworths Ltd and US giant Lowe's Companies Inc.

Timber company Gunns Ltd shares marked a squeeze be nearly 23 per cent during the session on Tuesday, one day after the company offloaded its Tasmanian retail division.

At 1547 AEST, Gunns shares were witnessed to trade 22.85 per cent lower at 27 cents, having traded as low as 26 cents, versus a 2.65 per cent slip in the benchmark index.

Sydney-based market analyst, Peter Warnes, posts that four million Gunns shares have been sold, most likely by big institutions.

Mr. Warnes believes that other companies may want to acquire Gunns' high value forestry assets.

In addition, he says Gunns share price may be witnessed to show an improvement soon if the company succeeds in boosting its exports with the lower Australian dollar.

Torenius posts that the sale has had posed no impact on Gunns shareprice as investors are more jittery about other issues.