Chelsfield investors in revolt

SHAREHOLDERS at property group Chelsfield are getting angrier at the 'ridiculous' amount of time it has been under siege by boss Elliott Bernerd.

Bernerd, 58, said in May he was trying to put together a bid for the £880m company, owner of the Merry Hill shopping centre in the West Midlands and Wentworth golf course in Surrey.

Since then shareholders have heard 'virtually nothing' from the committee of non-executive directors, led by Sir Bruce MacPhail, managing director of P&O Group. This was set up to oversee the bidding process.

One investor said: 'There is a real worry about what's going on. The timetable is ridiculous. It's just gone on for ever.'

Bernerd is being backed by wealthy friends, including Lubna Olayan, a Saudi heiress, and Beny Steinmetz, the Israeli diamond magnate. The grouping holds some 40% of Chelsfield, giving them huge clout.

One minority investor said: 'It makes the role of the independent directors even more critical.'

Some of them have a close association with Bernerd, going back years. MacPhail's P&O had a joint venture with Chelsfield. Michael Broke, 67, is a former Chelsfield executive director.

Shareholders have been discussing what to do next. They want more done to court other bidders and fear that Bernerd's bid will be only 300p to 310p. 'It would be a steal at that price,' said Andrew Penny, property analyst at JP Morgan.

Bernerd insists the non-execs have stood up to him. 'They have been very, very difficult with me.' He expects them to put out an update on his bid tomorrow or on Friday.

He said: 'I am confident that whatever proposal we put forward we will offer good value and a fair proposal for all shareholders.'

Chelsfield has a big and potentially profitable development pipeline, including prime sites in London at White City and Paddington Basin.

One analyst said: 'A number of shareholders have said the minimum bid should be about 360p.' Chelsfield rose 2 1/2p to 313p.