Fisher holdout thwarts takeover

Carmel Fisher's Fisher Funds appears to have thwarted a $341 million bid for full control of retirement village operator Metlifecare.

The fund said yesterday that it would not sell its 11.6 per cent stake to Retirement Villages New Zealand - a joint venture between Australia's FKP Property Group and Macquarie Bank.

The stake is large enough to block the duo from gaining acceptances for 90 per cent - the threshold at which they can force minority holders to sell.

They already have just over 75 per cent of the shares.

In a letter to Metlife, fund chief investment officer Warren Couillault said: "Having completed analysis of the independent advisers report prepared by Grant Samuel & Associates and having now had several discussions with representatives of Retirement Villages New Zealand ... Fisher Funds Management advises it does not currently intend to accept."

Independent advisers Grant Samuel said the $3.90 a share offer was fair after valuing the shares in a range of $3.63 to $4.15. Metlife shares closed yesterday unchanged at $3.88.

FKP and Macquarie yesterday extended the takeover offer for two weeks until December 17 and reiterated they would not increase the offer price.

They have given an undertaking to former cornerstone shareholders Todd Corp and Metlife founder Cliff Cook, they would not offer more than $3.90 a share until late next year. Cook and Todd sold their combined 60 per cent stake when the offer was declared unconditional last month.

However, observers say they may be able to entice Fisher with another bid at $3.90 if Metlife first pays a special dividend.

Fisher declined to further discuss its reasons for holding out. However, it is known to be a believer in the growth prospects for the sector, holding shares in Metlife rival Ryman Healthcare.