AMP extends bid again to corner Capital shares

AMP Property Portfolio has extended its bid for Wellington landlord Capital Properties for the sixth time as it creeps up Capital's share register. The takeover offer, which was due to close yesterday, has been extended until January 31.

Earlier this week AMP disclosed that its stake in the Wellington landlord had risen to just over 86.8 per cent from 84.8 per cent last week.

AMP Property Portfolio general manager Stephen Costley said the bid was extended yesterday to give shareholders a chance to examine the changes the AMP-controlled board had made to the company.

Last week, AMP used its recently gained control of the Capital board to slash the company's dividends by as much as 60 per cent.

AMP said at the time it wanted to retain the earnings to "assist in the funding of future opportunities", but some shareholders interpreted the dividend cut as an attempt to push shareholders into selling their shares.

Costley said yesterday he was confident AMP would reach the 90 per cent shareholding required to compulsorily acquire the remaining Capital Properties shares.

Adding to his confidence was the resignation of Shane Solly, a fund manager at ING who was responsible for the fund's holding of a little more than 4 per cent in Capital Properties. The sale of that stake would take AMP's holding over 90 per cent.

The change to Capital Properties' dividend policy meant ING was "going to have a look at the impact on the funds they hold and make a decision in the best interests of their investors", Costley said. ING had no comment.


AMP bid
* September 30: AMP makes its $1.42-a-share bid for Capital Properties.
* Oct 28: AMP increases offer to $1.48.
* Nov 16: AMP goes unconditional with takeover.
* Jan 4: Capital leaves NZX benchmark Top 50 index.
* Jan 5: AMP slices dividends from nearly 100 per cent of earnings to 40 per cent to 60 per cent.
* Friday: AMP's offer for Capital due to close, but AMP extends.