LIBERTY International chairman and founder, Donald Gordon, yesterday tightened his grip on the UK-based property group following a £159m share issue.

Gordon took up half of the 28,4-million share issue, which was fully subscribed yesterday. The company hopes that by strengthening its capital base, it will increase its chances of being included in the FTSE 100 index.

The 28,4-million share issue, priced at 560p a share, came with an allotment of 8-million shares to the Gordon Family Trust. The allotment represents 2,8% of Liberty's total issued share capital and will push Gordon's holding close to 20% of the company.

The increase will inch Gordon closer to the 25% level which would enable him to block special resolutions.

Gordon's interest in the group before the share issue added to about 53,8 million ordinary shares which represented 18,9% of Liberty's total issued ordinary share capital.

Morgan Stanley Securities was the underwriter of the share issue.

Gordon, who has been a substantial buyer of Liberty International shares, said yesterday the share issue offered him an opportunity to increase his interest closer to his target.

Asked if he was concerned about a takeover threat, Gordon said 'that will never happen without my approval'.

However, he said that the share issue was more about the strengthening of the Group's capital base.