Capital Properties changes tune

Capital Properties' independent directors have changed their views on the takeover plans of AMP Property Portfolio, telling shareholders who want to quit to sell sooner rather than later.

Michael Cashin and James Ogden said yesterday that shareholders who believed AMP would succeed should sell now rather than wait for compulsory acquisition because they would get their money sooner. But they still stuck to their original assessment that the offer was too cheap.

AMP has 88 per cent of Capital, which was yesterday trading at the offer price of $1.48.

The deal was extended this week until February 26 but one analyst said AMP might have to make a new offer to all shareholders at a much higher price to get what it needed.

Mark Lister, of ABN Amro Craigs, said he doubted that this week's extension would mop up the necessary number of shares to succeed.

Stephen Costley, general manager of the portfolio, ruled out a second bid at a higher price, saying he was confident he would get the outstanding 3 per cent necessary to get to the 90 per cent threshold by February 26.

"Costley's extension is the final one under takeovers code law," Lister said. "If they do not get to 90 per cent - and they quite possibly won't - I've calculated that AMP could spend $1.70 per share on a second independent offer to mop up the minorities and that would still equate to full ownership of Capital for less than the value of the underlying property portfolio."