Greycoat has delivered a firm riposte to proposals by one of its largest shareholders that the property investment and development company should break itself up.
Greycoat argues it is too early to sell its assets in a circular posted yesterday to shareholders. It also revealed that early repayment of its fixed-rate debt would cost about £10m relating to interest rate swaps.
UK Active Value, the investment vehicle which holds an 11%stake, has tabled a motion at a shareholders’ meeting scheduledfor 14 November calling on Greycoat to sell its assets. Brian Myerson, the UK Active Value manager who until March was a Greycoat manager, yesterday dismissed Greycoat’s circular as offering “hollow promises of jam tomorrow”.
The document was accompanied by results showing pre-taxprofits more than doubled to £3.8m (£1.7m) in the sixmonths to September.
- Financial Times 05/11/96 page 26
- The Daily Telegraph 05/11/96 page 29
- The Independent 05/11/96 page 19
- The Guardian 05/11/96 page 20
- The Times 05/11/96 page 32, 30 (Tempus)
