Deal anger for Sky City

Disgruntled Sky City Leisure noteholders are planning to contest the takeover price offered by Sky City Entertainment for the cinema subsidiary.

Three holders are expected to decline the acquisition notice they will receive from Sky City in the next two weeks, prompting the Takeovers Panel to commission a third independent report with a binding price.

One investor put $12,500 into Sky City Leisure three years ago. His holding was valued in the takeover offer at $492, just 4 per cent of the original value.

Another expressed disappointment at Sky Leisure independent director Mike Daniel, who accepted the takeover offer before the first independent report was released.

Sky City Entertainment made its 82c-a-share or $1.60-a-note takeover offer in April. Ellen Read