AMP Property says Capital Properties valuaiton "not credible"

AMP has offered $1.42 a share for Capital Properties, but yesterday Capital's independent directors advised shareholders to reject the offer.

Their recommendation was partly based on a report by independent adviser Deloitte which valued the shares in a range of $1.48 and $1.73.

Shares in Capital Properties rose 3c today to just make it into the bottom end of the range, at $1.48.

General manager of APP Stephen Costley said Deloitte's valuation was based on inadequate analysis.

"Even at mid-point, Deloitte's valuation would make CNZ by far the most expensive property entity in the market, with by far the lowest rate of return at 6.9%," he said.

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