Investors plan rescue for stricken Greycoat

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JULIAN TREGER and Brian Myerson, two South African investors, are expected to announce a rescue proposal for Greycoat, this week, writes David Hellier.

The proposal is likely to offer the stricken property company's preference shareholders at least 50 per cent more than the earlier rescue proposal from Postel, the BT and post office workers' pension fund, which was rejected by Greycoat's preference shareholders.

The two men, who speak for 18 per cent of the ordinary shares of Greycoat and a small holding in the preference class through their management of an investment vehicle, the UK Active Value Fund, are being advised by Samuel Montagu, the merchant bank. They are seeking a proposal acceptable to all four classes of Greycoat's shareholders and bondholders.

The proposal appears to be the only serious approach to have reached Greycoat's board.