Costley 'acting in investors interests'

A decision by the Takeovers Panel not to take action on shareholder complaints about Capital Properties' future has been welcomed.

Stephen Costley, AMP Property Portfolio's general manager, said the Takeovers Code had not been breached and many Capital shareholders found his offer fair.

AMP said yesterday that it had 72.35 per cent of Capital, up on its 71 per cent earlier this week. Two shareholders had complained to the panel about statements Costley made on dividend distributions under the new ownership.

NZX rebuked Costley this week for statements about delisting Capital.

But he said he had been acting in the interests of his stake-holders and had not broken the law.

"Our duty is to act in the best interests of AMP Property Portfolio's beneficial unit-holders, which includes mums and dads who want the best return they can get from their hard-earned retirement savings," Costley said.

"We have acted in accordance with the Takeovers Code in all respects, and it's important to note that the offer has been regarded as full and fair by more than half of Capital's shareholders who have accepted."

But he expressed concern that some shareholders were upset and said he wanted a chance to clear the air.

"Any changes at Capital will be up to the new board. We've been careful to be open about our support for the board in a review of the existing assets, operations, policies - including distribution policies - and structure of Capital," said Costley.

"We wanted shareholders to know that the way Capital operates could change.

"We believed it was prudent to be upfront about the fact that we would support potential changes if we achieved majority control."

He said Capital's new board could include independent directors Michael Cashin and James Ogden, who would continue to represent the interests of all shareholders.