AMP ramps up hostility in Capital bid

WELLINGTON - AMP Property Portfolio has added further hostility to its $355 million takeover tussle for listed property trust Capital Properties, writing an open letter attacking the trust's board for poor disclosure.

The letter, signed on Friday by AMP Property Portfolio general manager Stephen Costley, attacked Capital Properties chairman Tony Frankham for his reported statements that he was considering releasing further financial forecasts.

Mr Costley said the statements were "confusing and of real concern".

AMP Property Portfolio, a $600 million unlisted fund managed by AMP Capital, launched its $1.42-a-share bid for the trust last month after building a 16 percent stake at an average price of $1.35.

Capital Properties chairman Mr Frankham said the committee of independent directors would respond shortly to the letter.

"In the meantime, the independent directors of Capital Properties confirm their advice to shareholders to not accept the $1.42-per-share offer from AMP Property Portfolio."

Last week AMP announced it had received acceptances from one percent of Capital Properties shareholders, lifting its stake to 17 percent.

AMP's offer has been extended one week and now closes on November 16.

Shares in Capital Properties last traded a cent lower at $1.42, in a broadly positive market.

- NZPA