Uncertainty is damaging trade, troubled DTZ admits

Beleaguered property agent DTZ today warned lingering uncertainty over its future was damaging the business.

It was also forced to reveal details of a £525,000 pay-off to former chief executive Paul Idzik.

DTZ revealed in May that its 55% owner, Saint George Participations (SGP), had approached it with a potential takeover offer but talks have dragged on throughout the summer. SGP now has until October 17 to make a formal bid for DTZ under new Takeover Panel rules, hopefully drawing a line under the saga.

The firm said the "lack of clarity" over its ownership had hit trading in the new financial year against a already difficult backdrop of financial and economic turmoil.

Frustration over the drawn-out takeover talks are understood to be the main reason why Idzik and finance director Robert Rickert walked out on the business in August. The pair had been pushing for the board to go to the Panel to get a put-up or shut-up ultimatum for SGP, which has three representatives on the board.

It emerged today that Idzik departed with a cash payout of 175% of his salary - a windfall that DTZ previously said would be triggered only in the event of a takeover.

But changes to his contract - omitted from the firm's latest remuneration report- entitled him to the payout in all circumstances barring gross misconduct or being a "bad leaver".

DTZ said it took its "disclosure obligations very seriously and regrets this oversight".