AMP extends $357m offer for Capital Properties

AMP has extended its $357.6 million takeover offer for Capital Properties after gaining 75.9 per cent of the listed Wellington-based landlord.

The offer was due to expire yesterday. But AMP Property Portfolio general manager Stephen Costley said shareholders would have until December 23 to accept the $1.48 deal.

ABN Amro Craigs analyst Mark Lister said a large holding by investor ING could jeopardise any full takeover and frustrate AMP's efforts.

He said ING held just under 5 per cent of Capital, which has a wide spread of retail investors, providing a challenge for AMP to get to a 90 per cent compulsory acquisition threshold.

"ING's 4.9 per cent is exactly under the radar and could block the whole takeover," Lister said.

But Costley questioned this, saying Lister was presuming ING would never sell and while he could not predict a decision by ING's Shane Solly, it might be wrong to assume the stake would never be sold.

He said Capital's shareholders who had not yet accepted should also realise AMP had 75 per cent of the voting rights and special resolutions and had changed the board.

Costley said he had not joined Capital's board because he wanted to remain in his AMP Property Portfolio position which could conflict with board duties.

"If I had joined the board, my responsibilities would be as a director and I may have become aware of material that would be commercially confidential to Capital," Costley said.

"I would, therefore, probably be excusing myself from large parts of board meetings so it was sensible I didn't go on the board."

Last month, AMP suspended Capital's quarterly dividend due this month while the company's operations were reviewed.