Appraisal deadline too tight says Calan

A takeover offer for Calan Healthcare Properties Trust has developed into a tussle over an independent appraisal.

This month, Calan appointed Ferrier Hodgson to advise on ING Property Trust's offer for Calan units, and the report was due on Friday.

But Calan applied to NZX for an extension until February 27, saying Ferrier had said it was impossible to prepare "a full and thorough report" in the time allowed.

But NZX extended the date only until next Monday, causing concern among trust executives as to whether Calan's directors would be able to make a recommendation based on the report.

Calan told NZX it had trouble getting an assessor independent of ING. The short delay proposed would not prejudice ING's bid and unit-holders would not be disadvantaged.

But the main reason was Ferrier could not finish the report in time.

ING had objected to the extension, saying it would delay the bid and provide Calan's manager with more time to work on other proposals. It would also give rival bidders time to prepare other offers for Calan.

Its bid could also be jeopardised because takeover rules were being altered. Calan's manager already had sufficient time to prepare its response and get the independent report.

NZX said the partial extension was granted because it acknowledged the difficulties Calan had in finding an independent assessor.

* Stephen Freundlich, associate analyst of UBS Investment Research, issued a new report on Calan, saying ING's $1.25 offer was "very full value".

He valued Calan at $1.10 and said the trust had no land-bank potential and ING could not add value to the portfolio in its present form with a weighted average lease term of 11.8 years. Nor did the Government appear to have any interest in driving public private partnerships in the healthcare sector.