Hirco needs more time to decide on Hiranandani merger

Jan 12 (Reuters) - Hirco Plc (HRCO.L), an India-focused property firm, said on Monday it needed more time to decide about its proposed merger with Hirco Developments and the Hiranandani Investment Co, citing "a variety of views" among its shareholders.

The investment vehicle for India's largest residential builder Hiranandani said it postponed its extraordinary general meeting (EGM) scheduled for Jan. 16 until further written notice.

"The board feels it essential that sufficient time is allowed for all views to be considered and discussions to be held with shareholders," the company said in a statement. The company said over the past week it had talked to a number of shareholders, including hedge fund Laxey Partners Ltd, which holds a 10.1 percent stake in Hirco.

Laxey in a letter to Hirco shareholder on Jan. 7 had described the proposed merger as "shocking and ill-conceived" and advised them to vote against the move at the now postponed EGM.

Laxey said by agreeing to the merger Hirco would be handing de-facto control to Hiranandani and its shareholders would incur a substantial dilution to their current net asset value.

At 1040 GMT Hirco shares were up 1.2 percent at 85 pence on the London Stock Exchange. (Reporting by Usman Merchant in Bangalore; Editing by Tresa Sherin)