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Shaftesbury shareholders raise concerns about Capco merger

Shaftesbury and Capco have agreed on a deal, but they still have some convincing to do
Shaftesbury shareholders raise concerns about Capco merger
  • RLAM and Investec voice worries
  • Shaftesbury Capital would own nearly 3mn sq ft of real estate

Two leading Shaftesbury (SHB) investors have raised concerns about its planned merger with Capital & Counties (CAPC) after the boards of both companies waved the deal through.

Shares in Shaftesbury closed 8 per cent lower on Thursday, the day on which the respective boards approved the deal, while shares in Capco were down 2 per cent. The merger, which still requires the approval of shareholders and regulators, would create a £3bn company called Shaftesbury Capital – similar to Derwent London (DLN) in size – which would own almost 3mn square feet of West End real estate.

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