The second biggest shareholder in Hirco, the Indian property fund, is urging a vote against plans for a reverse takeover announced a week before Christmas.

Laxey Partners, which has built a 10% stake in Hirco, has written to other shareholders – including Standard Life and US hedge funds QVT and Alpine – describing the proposals as 'shocking and ill-conceived'.

Shares in Hirco have fallen to 74.75p from 500p on flotation at the end of 2006, when it was the largest real estate investment company on Aim.

Hirco – a vehicle for Hiranandani, India’s largest developer of mixed-use townships – is proposing to merge with Hirco Developments, transforming it from an investment company to a fully integrated real estate developer.

Financial Times, The Times