AMP claim sparks NZX criticism

The stock exchange has criticised AMP Property Portfolio general manager Stephen Costley for predicting the delisting of Wellington-based commercial landlord, Capital Properties.

AMP has just over 70 per cent of Capital and is seeking full control.

"What will happen is that eventually we'll get to 65 per cent or 70 per cent or whatever it ends up at, and the stock exchange will say the entity is not widely held and therefore the stock is not liquid," he told a newspaper.

"So market knowledge about what is happening is not sufficient for it to remain listed and it will be removed from quotation. Unless in the next few days we gain 90 per cent acceptances and can move to compulsory acquisition."

But the NZX said it was wrong of Costley to imply that the exchange would delist Capital. Any delisting would be NZX's decision and it had not delisted companies without a widely-held spread of shares, it said, citing Pacific Retail Group, Owens Group and Toll NZ. The NZX said it could allow Capital to remain listed if AMP did not reach 90 per cent.

* In a separate announcement, a new Capital board has been proposed. AMP's nominations are Murray Gribben and Costley and another director, yet to be named. Michael Cashin and James Ogden will continue as independent directors.

Capital chairman Tony Frankham, independent Peter Coote and Kiwi Income Property Trust representative Richard Didsbury are resigning.