CSC's investors to back deal for Trafford Centre

Capital Shopping Centres' £1.6 billion bid to buy Manchester's Trafford Centre was set to win approval from shareholders today, thwarting a campaign against the deal by one of its biggest investors.

US giant Simon Property Group, which owns 5% of CSC, claims that the firm is overpaying and opposes the terms of the deal, which will hand a 23% stake in the business to Peel Holdings, the current owner of the Trafford Centre.

SPG walked away from a £3 billion takeover of CSC earlier this month.

Oriel Securities analyst Charlie Foster said: "Never say never, but it seems unlikely on the back of seeing off SPG that they have not got the shareholder support that they need."

CSC, which owns regional shopping centres including Thurrock's Lakeside, has revised the Trafford deal to put a higher price on the new shares being issued to Peel.