Green caught in asset wrangle

Green Property's hostile £146 million takeover bid for the British property group Trafford Park Estates, has taken a nasty turn, after Green complained to the Takeover Panel about estimates that Trafford had put on undeveloped sites in its formal defence document.

The complaint by Green led to the panel forcing Trafford Park to issue a later statement to the effect that these additional potential surplus valuations are dependent on planning permission being obtained for the properties concerned.

In its defence document, Trafford Park said that valuers Lambert Smith Hampton had valued the group's assets at 201p sterling per share, a valuation that is 11p higher than Green's cash offer of 190p.

Trafford Park's chairman, Sir Neil Westbrook, stated: "As well as failing to recognise the current value of Trafford Park Estates portfolio, Green's offer fails to take account of the substantial value that exists within our exciting current development programme and in our strategic land holdings and longer-term development sites."

But it was the estimates placed on these potential developments that led to the Green complaint to the Takeover Panel and the subsequent clarification by Trafford Park.

In a statement with the defence document, Trafford Park said that in addition to the 201p per share valuation that Lambert Smith Hampton had put on its property portfolio, the valuers had estimated a development surplus of 47p per share from potential developments on two other sites. It was this estimated surplus that Green queried with the Takeover Panel.

In its later statement, Trafford Park said that the realisation of the 47p per share surpluses on these sites depended on a number of factors, including the obtaining of planning permission.

The next important date in the takeover battle is next Friday June 12th, the first closing date for acceptances by Traffford Park shareholders. Most observers believe that Green's acceptances at that time will be negligible, with Trafford Park shareholders waiting until later in the takeover timetable to see if any counter-bid emerges or if the Trafford Park is able to find a "white knight".