Rivals' offer opportunistic noise Waltus says
Waltus reckons an offer by two of its rivals to take over management of some of its funds is just a bit of "opportunistic noise."
Friday, August 25th 2000, 12:00AM
Last week rivals St Laurence Group and Strategic wrote to advisers and offered to take over management of any of the syndicates that vote against the Waltus merger proposal.
Strategic chairman John Pendergast and St Laurence managing director Kevin Podmore say investors have "expressed concern about the future management of their properties if they don't become part of Waltus Property Investments Ltd."
Consequently they have offered to manage any of the syndicates which vote against the merger. However, the management would be on the basis that the terms had to be "as favourable or more favourable than Waltus have presently suggested."
Some commentators have said that the proposed management structure for the merged business is far more generous than the current arrangement.
Waltus counter that saying that it anticipates that "in aggregate the total fees charged by Waltus will not be materially different" to the current costs.
It says the fees will be based on rental levels, so if they fall - as has happened - so to does the management fee.
"The method of charging will fall more in line with industry standards," Waltus says.
Meanwhile, Waltus' Syndicated Companies Board independent chairman Warwick Hawes says the Strategic and St Laurence are "just stirring the pot" in offering to take the management contract.
Hawes says it was up to the board to decide who gets the management contract and the board will "act in the best interests of investors."
Podmore says St Laurence and Strategic were "just putting their hands" by making the offer.
They weren't trying to "stuff up" the merger proposal, he says.
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