EUROPE - Property group DTZ moved to scotch rumours that its main creditor may be considering its options, saying it did not know why its shares plummeted this week.

In a statement, DTZ Holdings said: "DTZ Holdings notes the recent fall in its share price and is not aware of the reason for the fall."

The holding company, which has a group of national and international property advisory companies, has been locked in takeover talks with its largest shareholder, French firm Saint George Participations (SGP), since May.

On Monday, British newspaper The Daily Telegraph reported that RBS, which it says has £87m (€99.5m) of debt in the company, was understood to be asking Ernst & Young to give strategic advice on its options for the debt.

A spokesperson for RBS told IPE the bank had no comment on the news report.

In its statement, DTZ said it continued to be in an offer period and was still evaluating "alternative strategic options" in the event a "satisfactory offer" is not received.

It noted press reports about discussions with RBS and acknowledged the UK bank was its main provider of debt.

"The company values its long-standing relationship with RBS and continues to be in regular dialogue with RBS and its advisers in the normal course of business," it said.
"SGP has stated to the board of the company that it remains fully committed to DTZ."

On the London Stock Exchange, DTZ's shares closed at £0.27 yesterday, down 32.5% from their close of £0.40 less than a fortnight ago on 8 September.