Wellington, Sept 16 NZPA - PGG Wrightson Ltd (PGW) said Silver Fern Farms has given notice of an intention to sell some or all of its shares in PGW.

PGW said a 10-day consultation period was now in operation and it would not be commenting further. The notice was given under a settlement agreement between the two companies.

Under that settlement PGW issued Silver Fern Farms 10 million ordinary shares ranking equally with existing shares.

PGW last year defaulted on a plan to buy 50 percent of Silver Fern farms for $220m.

PGW last month said it may need new capital after posting a net loss of $66.4m for the year to June 30.