GPT Group will keep its minimum acceptance level at 50.1 per cent for its $4 billion tilt at the Commonwealth Property Office Fund (CPA), and says it is capable of running the fund if Dexus Property becomes a hostile minority unitholder.
However, there are suggestions Dexus is still mulling a renewed offer for the management of CPA once it completes a review of the new documents released by GPT on Tuesday.
Dexus and its partner, the Canada Pension Plan Investment Board, hold a 14.9 per cent interest in CPA and have said they do not intend to accept the $1.27 cash and scrip offer from GPT. That would make them a hostile shareholder and block GPT from gaining full control.
Investors say the Dexus management could look to offer a cash and scrip offer of about $1.30 a share, a compared with the initial $1.24 offer, which included the $41 million payment to Commonwealth Bank for management rights.
However, if GPT's shares trade below its offer price, Dexus could relaunch its revised offer of $1.24 a CPA unit. Given both deals were a combination of scrip and cash, CPA investors are being forced to pick which company will be the best manager for the office assets.
In its bidder's statement released on Tuesday, GPT said it had the strategic and financial capability to manage the range of situations that may arise under the offer, should it not reach the 90 per cent acceptance level.
But the document added that if "CPA unitholders do not accept the offer, there is a risk that their investment in CPA may be adversely impacted because the price of CPA may fall or they may become minority unitholders in a less liquid investment".
GPT also received a boost from news its offer had received support from two New York-based hedge funds run by Gruss Asset Management, and also a tentative nod from fund manager Mondrian.
The statement was made amid news that GPT had appointed Liz Crotty as its new national director of leasing for office, logistics and business parks. She was previously with Lend Lease.
Ms Crotty will replace Luke Briscoe who will move to a new position in GPT's office team.