Greycoat facing vital investor vote

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GREYCOAT is desperately urging shareholders to support Postel's controversial rescue plan for the group, as the outcome of a crucial shareholders' vote on Friday appears to be balanced on a knife-edge, writes David Hellier.

Richard Guignard, the finance director at the troubled property company, predicted that the controversial rescue of his group by Postel, the BT and post office pension fund, would be approved at Friday's shareholders' meeting despite continued resistance by dissident investors.

'I honestly believe that after the meetings we have had with bondholders and preference shareholders that they see it in their best interests that the company should survive,' Mr Guignard said. This was shortly after the company repeated that a forced sale of the group's properties would realise much less than the market expected.

The dissident shareholders, who have opposed the deal since it was announced in early summer, will not be surprised by Mr Guignard's comments and have interpreted the issuing of a statement to the Stock Exchange late Friday evening as a sign of panic.

The company has consistently said that unless the rescue goes through, it would probably have to cease trading.