ELAINE HARDCASTLE, London | Wednesday 11.30am.
THE UK’s third biggest property group British Land on Tuesday said it is unlikely to take up the offer of a seat on rival Liberty’s board, leaving the door open for a hostile bid.
British Land snapped up a 29,9% stake in Liberty International on Monday, calling it a ”strategic investment”. Liberty warned British Land it will have to promise not to bid for the whole group if it wants a seat on the board.
On Tuesday, it appears that British Land preferred to keep its options open.
”We haven’t ruled anything in or anything out,” Finance Director John Weston Smith said, in response to a question on the possibility of a hostile bid.
However, Smith said it is unlikely his company will be seeking a position on Liberty’s board. ”We think it’s unlikely as there is a risk of conflict running two such similar operations,” he said. ”Furthermore, we don’t feel the need to have a watchdog on the board because Liberty is a very well run company.”
Under stock exchange rules, any stakeholding of 30% or more requires the investor to make a full bid for its target.
British Land bought 93,6-million shares in the UK’s sixth largest property company from South African-listed firms Standard Bank Investment Corp and Liberty Group. — Reuters