Trafford Park Estates has rejected Green Property's £131 million sterling cash or £146 million paper offer. However, it has abandoned its previously-agreed merger with Barlows and has effectively put itself up for sale to the highest bidder.

In another clear indication that a takeover of the Manchester-based property group is inevitable, the board has enlisted valuers Lambert Smith Hampton to produce an up-to-date valuation of the group's assets. The most recent valuation of Trafford Park, carried out last year, produced a net asset value of 167p sterling per share.

Sources close to Trafford Park have indicated that the revised net asset valuation is likely to be between 185p and 195p sterling per share, and that on this basis the Green offer, both cash and shares, is inadequate.

In formulating a defence to what is now being treated as a hostile bid, Trafford Park will no doubt emphasise that Green's own shares are trading on a near 50-per cent premium to Green's own end-1997 net asset value of 360p per share.

Despite getting acceptances from almost 79 per cent of Barlows' shareholders for its merger offer, Trafford Park has now abandoned the merger "in view of the significant change in circumstances". Industry sources said, however, that Trafford Park had shelved the Barlows deal on the basis that no bidder - Green or any third party - would be interested in bidding for the merged group.

The progress of the Green takeover bid, the biggest move in Green's history, will now be largely dictated by the revised net asset figure produced by Lambert Smith Hampton and the ability of Trafford Park chairman, Sir Neil Westbrook (81), to find a "white knight" willing to top the Green offer.

The most obvious counter-bidder is the British property group, Peel Holdings, which operates the G Centre, a £600 million retail and leisure development which is adjacent to Trafford Park's main industrial estate in Manchester.