Brisbane-based funds manager Trilogy Capital Group has launched a takeover offer for the management rights to the $970 million City Pacific First Mortgage Fund.

Trilogy claims the offer, prepared in conjunction with corporate adviser Grant Samuel, will help to restore liquidity for the First Mortgage Fund's 15,000 unitholders, who have seen their investments frozen since March.

City Pacific chief executive John Ellis -- who just two weeks ago took over the reins from company founder Phil Sullivan -- yesterday flatly denied the company had received any offer: 'I am certainly not aware of any offer received to take over as responsible entity. There has been no approach.'

When later told that The Australian had obtained a copy of the 15-page offer document, Mr Ellis admitted he had been approached by Trilogy but said it did not constitute an offer because 'I wouldn't consider it'.

The Australian