Hirco, an Aim-listed Indian property company, has delayed an EGM to vote on plans for a reverse takeover following shareholder opposition.
Laxey Partners, the second-biggest shareholder in Hirco with a 10 per cent stake, wrote to other shareholders, including Standard Life and US hedge funds QVT and Alpine, calling the proposals 'shocking and ill-conceived' shortly after Christmas.
Hirco, a vehicle for developer Hiranandani, proposed to merge with Hirco Developments, moving it to become a real estate developer rather than investment company.
Yesterday, Hirco said it had met a number of shareholders, including Laxey. 'Following these discussions it is apparent that there is a variety of views about the proposed merger and how best to address Hirco's share price discount,' it said.
The company is trading at a discount to its net asset value of more than 90%.