Chelsfield snubs Bernerd's £860m

PROPERTY developer Chelsfield confirmed it had once again rejected as too low an £860m offer led by its chairman and founder Elliott Bernerd to take the company private.

Chelsfield's independent directors said the 305p per share cash offer 'may not fully reflect the long-term value' of the company whose schemes include the White City shopping and leisure park and a mini-city at Stratford in east London.

'Discussions are progressing with the consortium with a view to securing a more attractive proposal for Chelsfield shareholders,' the independents added and confirmed no counter-offer had materialised.

Sources close to the company said that a price of 310p had been aired during weekend talks, but nothing had been agreed.

As revealed in the London Evening Standard on Tuesday, a refinancing of Chelsfield's loss-making subsidiary Global Switch is causing 'big trouble' for Bernerd's bid as the consortium's bankers have yet to sign off their commitments to a fully-funded offer.

'There can be no assurance that any offer will be forthcoming,' Chelsfield said today.

Delays in completing a £51.7m cash injection from Morley Fund Management is jeopardising the chances of Bernerd, a 12% shareholder, making a fully funded offer for Chelsfield, insiders said.

HBOS is thought to be heading £1.5bn of debt for the buying consortium while negotiating a separate deal for Global Switch. The bank has yet to sign off on either as it wants a set of cross guarantees - which Bernerd's consortium is resisting.