Shares in Henderson Land Development and its subsidiary Henderson Investment rose yesterday after the parent raised its offer to take the investment arm private. Opponents of the deal remained unimpressed by the revised terms, however, while analysts cast doubt on whether the move will receive shareholder approval. Henderson Investment - which holds stakes in utility Hong Kong and China Gas (Towngas), hotels, an Internet play and a property developer - saw its shares rise 2.02 per cent to a three-year high of HK$7.55. Henderson Land climbed 0.36 per cent to HK$27.80. Following strong opposition from institutional investor Templeton Asset Management and investment commentator David Webb, Henderson Land raised its offer price 3.4 per cent to HK$7.60 per Henderson Investment share over the weekend. The revised offer values Henderson Investment at HK$5.67 billion. Templeton portfolio manager Eddie Chow Kwok-kong said: 'We are happy to see they have revised the price, but it is still some way off the ideal price. Whether it is a fair deal for our trust holders requires further study.' Templeton, a major investor in Henderson Land and Henderson Investment, had yet to decide how to vote on the revised deal, he said. The fund manager estimated last month that Henderson Investment was worth HK$11 a share based on the company's portfolio - a 36.42 per cent stake in Towngas, a 66.67 per cent holding in Henderson Cyber, 43.67 per cent of Miramar Hotel and Investment, and 30.98 per cent of Hong Kong Ferry (Holdings). Mr Webb described the revised offer as 'grossly inadequate' and said he would recommend minority shareholders kill the deal. However, a fund manager at a European fund house which has invested in the Henderson stocks said it was unfair to value Henderson Investment's asset portfolio at market prices. 'Towngas is a prime example. The utility has outperformed the market substantially in the existing bear market. What should its valuation be in a bull market?' the fund manager said. Morgan Stanley said there was a 50-50 chance the deal would be voted through as 'the modestly higher price' was unlikely to persuade minority shareholders who opposed the deal. 'We think the move reflects genuine risk of the proposal getting voted down,' the brokerage said. Goldman Sachs analyst Ting Chuk-kwan also believed the proposed privatisation might fall through and downgraded her rating on Henderson Land stock to 'underperform' from 'in-line'. The stock has risen 32 per cent from its October low of HK$20.95. Merrill Lynch, however, forecast the offer would succeed. It said the deal would be positive for Henderson Land, lifting its net asset value, earnings and return on equity.