Sit tight until offer report, Capital shareholders told

Shareholders in takeover target Capital Properties have been warned not to accept the offer until a detailed report on the deal is out next month.

James Ogden, acting chairman of the independent directors' committee, yesterday sent a letter to shareholders telling them no shareholder should act until they had read the target company statement that would include an independent adviser's report. It would also include the Capital directors' opinion of the deal.

The takeover offer at $1.42 a share, by the unlisted AMP Property Portfolio, opens this Friday but Ogden said he did not expect the report to be issued until next month.

"There is no need for shareholders to respond to the offer prematurely," he wrote.

The report will be issued about mid-October, with the AMP offer not closing until around the end of next month.

Cameron & Co has been appointed advisers to the Capital board.

AMP Property said its offer was generous and that it had good feedback indicating many shareholders would accept.

Mark Lister, of ABN-Amro, has sent out an analysis of the offer that tells shareholders not to sell.

He said the price might be too low to succeed and the market would await moves by 19.9 per cent Capital shareholder Kiwi Income Property Trust.