Early deadline a mistake - AMP

AMP Property Portfolio has extended its offer for Capital Properties until December 1, saying it made a mistake when it extended its bid on Wednesday night until only next Friday.

AMP general manager Stephen Costley said advisers First NZ Capital had picked up the error, where the extension had not been pushed out far enough. Shareholders were initially given nine days instead of the mandatory 14 demanded by NZX listing rules.

"We found out when we were reviewing the note this morning," Costley said yesterday.

AMP would nominate four new board members soon and would shun any dividends.

Capital chairman Tony Frankham said he would resign from the board at its next meeting, expected to be next week, and he assumed AMP would appoint board members.

"I would imagine they would want to exert their control as soon as possible," Frankham said.

But one analyst predicted AMP would have to extend a third time and would still not totally succeed in its ambition to take over the whole company. AMP owns 67.8 per cent of Capital.

Mark Lister, of ABN Amro, is encouraging Capital's shareholders to reject the $1.48-a-share offer, which would create a $1 billion-plus unlisted real estate investor.

Capital's large retail shareholder base would make it hard for AMP to reach 90 per cent by next Friday, which it needs to compulsorily acquire all the remaining shares.

"The majority of people were expecting the offer to expire on Wednesday, so potentially most of those who were going to accept have already done so," Lister said.

"Also, with such a large and diverse shareholder base, it was always going to be tough to get to 90 per cent, especially when you have ... mixed views coming out of the financial community."

Costley said the company was "delighted with the acceptance level to date" and he encouraged shareholders to sell quickly because Capital would be a vastly different company under AMP control. It would include a wide-ranging review of assets and dividend policies.

But Lister said shareholders who sold out would be disadvantaged because they could not find a company as good as Capital to invest in again.

"People should focus on the fundamentals of the company, rather than on what changes may or may not happen if it remains listed.

"AMP are astute investors and they will want to look after their significant investment in the company in a way that will add value to what they have paid.

"Shareholders need to remember that it is the only listed property vehicle in New Zealand that is internally managed - a significant positive about Capital - and that it has an unmatched position in the Wellington Government precinct."