AMP Property Portfolio (APP) has slammed an independent valuation of takeover target Capital Properties as `not credible".
Thursday, October 13th 2005, 7:48AM
by The Landlord
AMP has offered $1.42 a share for Capital Properties, but yesterday Capital's independent directors advised shareholders to reject the offer.
Their recommendation was partly based on a report by independent adviser Deloitte which valued the shares in a range of $1.48 and $1.73.
Shares in Capital Properties rose 3c today to just make it into the bottom end of the range, at $1.48.
General manager of APP Stephen Costley said Deloitte's valuation was based on inadequate analysis.
"Even at mid-point, Deloitte's valuation would make CNZ by far the most expensive property entity in the market, with by far the lowest rate of return at 6.9%," he said.
