A major figure at Investec Asset Manager says he will oppose the proposed merger between F&C Commercial Property and the UK Commercial Property Trust.
A leading figure at
property investment firm Investec has announced he will vote against a proposed £1.6 billion merger.
Investec Asset Management's Max King is opposed to the merger between F&C Commercial Property and the UK Commercial Property Trust, in both of which he holds significant shares, City Wire reports
His opposition to the deal is due to the fact that he believes the combined strength of the two property investment vehicles will be less than the sum of the parts.
Mr King told the publication: "Shareholders will gain no benefit apart from a minimal reduction in costs.
"We like the choice between the two good companies and don't like the idea these will become one."
He added that the
commercial development assets in both pools were strong, while combining them would just come out with the "lowest common denominator".
Earlier this week, analyst Paul Locke of Cannacord claimed that this merger would see asset values for both funds compressed.
Posted by Hadji Singh.
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