Bluestar, the finance company that is Home Reit’s only declared bidder, has complained it has been stonewalled by the board of the scandal-hit homeless accommodation provider over a possible 40p per share cash offer.

In a statement to the stock exchange Bluestar, whose founder Benoit Gotlieb previously worked at Home’s fund manager Alvarium Investments, said it had been ‘frustrated’ with the lack of engagement from the Reit’s board since its first approach in February.

This had been particularly acute in the past three weeks when Home had repeatedly declined to formally respond to the possible offer which it said offered shareholders an exit at a small premium to the Reit’s share price at its suspension in January following the failure to publish its annual report with four months of its financial year-end.

It said Home’s financial adviser had guided Bluestar to wait patiently until the board had assessed the offer and provided the necessary due diligence information, indicating that it expected the board would view further requests to extend the bid deadline favourably. The ‘put up or shut up’ deadline under the City takeover code has been extended twice. 

On 5 May Bluestar made a formal request to extend by another month the deadline that was due today. But yesterday afternoon ‘SSP delivered the staggering message that the board has met and decided that it would not grant an extension to the PUSU deadline as “Bluestar has not sufficiently progressed the possible offer”.

In its statement yesterday it said: ‘Bluestar considers that the board should have greater attention to its fiduciary duties to shareholders to promote the success of Home and considers that this board decision removes a major element of optionality for shareholders at what is undoubtedly a very difficult time for Home given its suspension, potential delisting and the very challenging circumstances it finds itself in.’ 

It urged shareholders to press the board to extend the deadline before it expires at 5pm today saying otherwise it would be blocked from making an offer for six months.

Home has not responded publicly. The argument comes as the board, chaired by Lynne Fennah, deliberates whether to appoint a new fund manager to replace Alvarium.

Home’s problems started with a devastating short-selling attack in November by Viceroy Research. It published a report alleging property flipping and conflicts of interest by the fund manager. Since then charities that lease Home’s properties have withheld rents in a dispute over property improvements. Bluestar’s approach was revealed by the board on the day it said it was looking at all its strategic options including a sale.