Numbers were still being finalised yesterday with the offer period closing at 5pm. But as of 3pm, ING said over 95% of unitholders in its Diversifed Yield Fund (DYF) and Regular Income Fund (RIF), had agreed to the offer and around 85% had selected the Five Year Cash Account option. ING says payment on these acceptances is expected to be made by August 28, 2009.

While the response to the offer had been strong, ING says it had received several queries from investors wanting more time for various reasons.

"It has always been our intention that all investors who wanted to accept the offer would be able to do so. We will therefore sympathetically consider any late acceptances, received over the coming week, on a case by case basis," it said.

The DYF and RIF funds, which had exposure to collateralised debt obligations, were frozen after the market for structured credit assets "virtually disappeared". ING subsequently proposed a "cash out" option whereby investors received 60 cents per unit back for the DYF and 62 cents for the RIF. Those taking the Five Year Cash Account option see the proceeds of their unit sales invested in an ANZ Cash Account for five years, receiving a fixed interest rate of 8.3% per annum. The money is accessible at any time.

However, accepting either option means investors waive their rights to legal action, something Labour commerce spokesman and former Commerce Minister Lianne Dalziel has spoken out against.

The ANZ National Bank, which owns 49% of ING New Zealand, has already agreed to allow claims lodged with the Banking Ombudsmen by the end of this month to stand, despite the terms set out in the ING offer. Dalziel is calling for ING to do the same with the Commerce Commission investigation underway.

COMMENT: Investors make politicians look silly