Property trust merger bad for investors, says analyst

Brokerage firm Canaccord Genuity says shareholders should vote against the merger of F&C Commercial Property trust (FCPT) and the UK Commercial Property trust (UKCPT) because it is not in investors' interests.

Earlier this month, the board of FCPT agreed to a takeover by the Ignis-managed UK UKCPT which would create a £1.7bn company. Under the terms of the deal, FCPT shareholders will receive new UKCPT shares on a NAV for NAV basis. Alternatively, there is the option of a cash exit for FCPT shareholders at 91p per share. However, the broker says the deal offers more risk than reward. "Canaccord Genuity believes the boards of both funds, and particularly of FCPT, have not acted in the best interests of all shareholders, that alternative options should be placed before the market, and that...