AMP likely to extend offer to take over Capital

AMP Property Portfolio might extend its bid for Capital Properties until later next month but is then ruling out further extensions to its $357.6 million takeover offer.

Stephen Costley, the portfolio's general manager, said the deal must close by February 26 to meet takeover offer regulations and he encouraged all shareholders to accept the $1.48 offer.

Last week, AMP extended its bid for the sixth time and its offer is now due to close on January 31.

AMP has 87 per cent of Capital and Costley said he was confident he would get 90 per cent soon which will then allow AMP to acquire the remaining shares through a compulsory acquisition.

Today he plans to show Capital's two independent directors, James Ogden and Michael Cashin, a list of shareholders who have not accepted the bid.

"My point is that there are a number of shareholders who have [parcels of] 5000 shares who are probably not what you would call professional investors," Costley said. "These are people who might not understand the implications of the business review of Capital, or where the bid is and if they continue to not accept, they will tie up the use of their funds for another two months."

Costley has calculated AMP needs to buy a further 7.3 million shares for $10.8 million to get to the 90 per cent threshold.

ING owns a stake of about 4 per cent but Costley said its decision was not crucial to achieving his aim of getting to 90 per cent. Instead, the decision of several smaller retail investors who had just returned from their Christmas break could easily swing the deal.

Capital shareholder Claude Moffat has criticised AMP's offer and says other shareholders have expressed support for his stand to hold out against selling.

"I have received two phone calls from sympathetic shareholders who are holding out like me," Moffat said.

Moffat said Capital was New Zealand's best property company and he is unhappy with its ownership change as AMP is Australian and it will result in Capital being delisted from the NZX as it does not have a wide spread of shareholders.