Opposed API chief faces Aberdeen axe

ABERDEEN Asset Management boss Martin Gilbert is trying to oust the head of the firm's property investment arm, weeks after pulling a sale of the division.

Chief executive Gilbert is understood to have told Iain Reid he no longer had a future with the firm. Reid has not returned to his office since the end of his August holiday.

Reid is thought to be seeking a pay-off that could be double the £248,000 he was paid in 2002, linking the long-term performance of Aberdeen Property Investors. He is also thought to want compensation for the loss of a new pay package had API's sale gone ahead.

Gilbert declined to comment about talks with Reid whom he described as 'a good personal friend'. He added: 'He has not gone yet, we are talking to him at home.'

API was to be sold to British Land following almost 10 months of trying to sell the business. But Gilbert pulled the sale last month.

British Land halved its offer price to about £45m after API's Nordic executives - who manage about half of the business - refused to be owned by a quoted property company.

Reid joined the main Aberdeen board a year ago but resigned in November shortly after the Aberdeen board and API executives agreed to sell the property arm.