MacarthurCook makes play for property group

FLEDGLING property fund manager MacarthurCook has launched a bid to take control of listed property developer Lion Equities.

MacarthurCook was launched last month by former Australian Unity head of funds management Craig Dunstan.

Lion Equities listed in 2000 and has been a developer of industrial estates.

Dunstan is proposing to replace two of Lion’s directors, chairman John Lawson and director Leon Hickey — who is also a current Australian Unity director.

In their place, MacarthurCook is proposing that Dunstan, former BNP Paribus deputy chairman Richard Haddock and Tolhurst Noall director Peter Chapman be elected.

But Lawson has recommended shareholders reject the MacarthurCook proposals saying “it is a major part of tactics to gain control of the company through control of the board by stealth”.

Earlier this year, Dunstan became a substantial shareholder in Lion and now holds about eight per cent of the capital. Lawson holds about 18 per cent of the capital.

In May, Lawson says the company was approached by Dunstan, who suggested that Lion move into funds management by acquiring MacarthurCook.

Money Managementhas obtained a copy of this proposal, which suggested that Lion buy 50 per cent of MacarthurCook for $250,000. It also proposed Lion issue Dunstan with one million shares in the company and a number of options linked to performance targets.

Lawson says the board asked for more details of the proposal, but that the company had not heard from MacarthurCook since.

A meeting to vote on MacarthurCook’s proposals has been set for October 7.