CDL moves to quell disquiet among shareholders

Singapore

AS a shareholder revolt hangs over City Developments' (CDL's) proposed £1.8 billion (S$3.2 billion) takeover offer for sister company Millennium & Copthorne Hotels (M&C), CDL has moved to soothe claims that it is buying minorities out on the cheap.

In a letter to M&C's independent directors on Tuesday, fund managers from International Value Advisers, which holds 7 per cent of M&C, and MSD Partners (roughly 1.4 per cent) criticised the directors' recommendation to accept CDL's proposed cash offer of 552.5 pence a share.