Sounds like from the article below they will support it.Hedge...

Sounds like from the article below they will support it.



Hedge funds likely to support ING takeover: the ING Industrial Fund deal looks like being wrapped up Florence Chong From: The Australian March 17, 2011 12:00AM

INSTITUTIONAL shareholders of the ING Industrial Fund are expected to support overwhelmingly a $2.5 billion takeover bid by a Goodman Group-led consortium.
IIF's unitholders will meet in Sydney today to consider Goodman's offer made in December.

Sources told The Australian proxies received suggested hedge funds had supported the bid.

Both ING Group and Goodman were excluded from the voting, and the consortium needs approval by 75 per cent of unitholders to get the deal through.

Goodman's planned tie-up with IIF was challenged earlier this month by international hedge funds, which built their holdings and threatened to block the deal.

Industry sources said the hedge funds were acting to force Goodman Group to give an assurance that holders of convertible notes would be paid out. The hedge funds own $395 million worth of IIF's exchangeable notes, which trade on the Cayman Islands Stock Exchange. These notes could be converted to equity.

However, sources had said at the outset that it was "a storm in the tea cup" and it would be resolved quickly.

The Goodman consortium involved in the bid includes the Canadian Pension Plan Investment Board, the Dutch pension group APG (All Pensions Group) and China Investment Corporation.

As part of the deal, which requires Foreign Investment Review Board approval, the Goodman consortium will pay unitholders 54.6c per security.

This includes a 1.6c distribution up to the December quarter and 53c for net tangible asset value.

The offer consists of $1.4bn in equity and $1.1bn in debt repayments. IIF would become a private fund, Goodman Trust Australia.

The largest shareholder in GTA will be CPPIB with 42.5 per cent: then APG with 25.2 per cent; Goodman with 19.9 per cent and CIC with 12.6 per cent.

Goodman will pay ING $22.5m for transition of the management of IIF to Goodman. The Dutch group is also the largest shareholder in the trust.

Goodman will contribute $184m for its stake in GTA.

ING Management is advised by UBS, Goldman Sachs and Malleson Stephen Jaques, while Macquarie is Goodman's adviser.

While the IIF deal, the second largest ING trust in Australia, was being wrapped up, market sources lamented that no progress had been made on the remaining four trusts.

It is widely known that the Investa Group is keen to take on the management right for the ING Office Fund, but negotiations appeared to be painfully slow.

Investa's main competitor is thought to be a management internalisation proposal.

Investment banking sources said the ING Australian board had accepted an internalisation plan for its smallest trust, ING Entertainment Fund.

Key shareholders in that fund had been pressing for a decision from the board.

"The main stumbling block now is the price for the management rights. We think -- and the Australian board supports us -- that it is worth $1m, but ING Groep wants more like $2m-$3m for it," said one source.

Considering it had lost tens of millions of dollars in shareholder value, unitholders did not think the management rights would be worth more, he added.

The trust was listed at $1 a unit, and closed yesterday at 12c each.

The most problematic trust is the ING Real Estate Community Living Group, according to those familiar with the ING trusts.

An industry source said the owner of Australian retirement housing and overseas and student accommodation would probably be wound up.

The future of the ING Healthcare Fund is unclear after two suitors -- Canadian group NorthWest Healthcare and US REITs manager RMR -- ended negotiations recently.

Having sold its global real estate platform to CBRE Investors for $US940m last month, ING was thought to be keen to exit Australia, but sources said it could now be a protracted departure.