Henderson Land Development, which is controlled by Lee Shau-kee, has sweetened its all-share buyout offer for subsidiary Henderson Investment by 4 per cent, but analysts said it still fell short of market expectations. After previously offering one share for every 2.6 shares in Henderson Investment it does not own, Henderson Land yesterday improved the ratio to one share for every 2.5 shares, equivalent to about $10.37 billion. The new deal values Henderson Investment shares at $13.88, a discount of about 18 per cent to their estimated net asset value of about $17. The previous all-share offer, made last month, was worth $13.23 per share at the time. Henderson Investment last closed at $12.95 on Friday, having put on about 22 per cent since November 9 when Henderson Land announced the buyout offer. The company said the new terms were final. Analysts said the 4 per cent increase showed Mr Lee was not desperate to push the deal through, adding that it might not be enough to persuade investors to vote for it. Adrian Ngan, the regional property research head for BNP Paribas Peregrine Securities, said there was a good chance the privatisation could fail. The improved offer came as no surprise after investors such as Mark Mobius, the managing director of US fund house Templeton Investment, and shareholder activist David Webb voiced their opposition to the buyout. Mr Mobius said previously that Henderson Investment was worth $18 a share as the company held quality listed assets such as piped-fuel supplier Hong Kong and China Gas. The latest episode is almost a rerun of events in November 2002 when Henderson Land tried to take Henderson Investment fully private by offering $7.35 a share in an all-cash bid. That proposal was rejected by more than 14 per cent of minority shareholders, including Templeton Investment, even though Henderson Land increased the offer price by 3.4 per cent to $7.60 three weeks later.