A consortium of Unibail-Rodamco-Westfield investors has opposed the shopping centre owner’s plans for a €3.5bn (£3.2bn) equity raise.
Investors with a 4.1% stake URW say the capital raise is “severely dilutive and unnecessary”.
The group, led by the former chairman and chief executive of Unibail Léon Bressler and French tech entrepreneur Xavier Niel, is calling on shareholders to vote against the move in the general meeting on 10 November.
Bressler said: “URW’s Reset plan, underpinned by a severely dilutive rights issue, is a misguided act by a management team that remains prisoner of its failed strategy that started with the acquisition of Westfield.
“This acquisition polluted URW’s dominant position in Europe with a more marginal position in the US, a less attractive market. Moreover, it burdened the company with debt, distracted management and was a gross misallocation of resources.”
Bressler said URW must address the high level of debt, but this does not warrant a capital raise, which would have “devastating consequences” for shareholders.
He added: “It is time to re-establish URW as Europe’s leading pure-play prime shopping centre business by selling the US portfolio and using proceeds to solve the company’s debt issues.”
The group has also called for greater oversight, with the admission of three new members to the supervisory board.
Colin Dyer, chairman of the supervisory board at URW, said: “The RESET plan is already on track, as evidenced by the recent announcement of the disposal of the SHiFT office building, which demonstrates URW management’s ability to deliver on its strategic roadmap.
“The RESET plan is about immediate action to ensure the operational and financial flexibility of the group. It will reinforce URW in the long term to the benefit of all its shareholders.”
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