New danger in splits sector

Analysis of a deal involving the Property Income and Growth trust (PIG) has raised red flags for investors in zero dividend preference shares, who may be frozen out of voting on takeover bids in a way that involves managers securing their own mandates. According to market data provided by Iimia head of investment trusts Nick Greenwood, the chief executive of PIG's existing management company, BC Asset Management, managed to use the voting power of ordinary shares to see off an alternative bid. Because of this, holders of zeros saw themselves accepting an offer worth about 59p ...