Critics of the conditions for Westfield Group's $65.8 billion merger with Westfield Retail Trust hope the companies' full-year results briefings this week will bring news of a revised deal, as investors tip earnings slightly ahead of expectations.
After announcing in December a restructure of its shopping centre empire, pressure has been mounting on Westfield to offer a greater payout to WRT investors.
These investors believe they are being asked to buy Westfield Group's Australian and New Zealand management and development business on a price-earnings multiple some fund managers have estimated at about 20 times.
The deal involves merging Westfield Group's Australian and NZ property interests with WRT to form a new company called Scentre Group, while Westfield Group's global malls would be in a company renamed Westfield Corporation, which may be listed in Australia and London or New York. One option is for Westfield Group to spin out Scentre as a separate company, with the status quo to remain for WRT.
While analysts say any news on the merger proposal, to be voted on in May, would dominate results, the shopping centre giant is likely to offer a relatively positive outlook, but the Australian portfolio is still under pressure from an income growth perspective, judging on the recent result from local rival landlord CFS Retail.
Westfield has offered guidance of a 2.3 per cent lift in earnings for the 2013 calendar year.
"With the results we have seen to date, they will come in with results in line with expectations," the managing director of fund manager Maxim Asset Management, Winston Sammut, said.
"It may be a little bit better, given the US seems to be in a recovery phase and what we are seeing with Simon Property Group."
Other sources said questions would remain over the performance of the company's US malls.
"Westfield had rent falls during the global financial crisis, but not as much as its peers, so there is less upside as things improve," one analyst said.
The company's two major malls in Britain, Westfield London and Westfield Stratford, had had strong rent growth, which was likely to continue.
Mr Sammut said should Westfield deliver better than expected numbers, it might justify a move by the group to reconsider the amount of money distributed to WRT shareholders under the merger plan and justify a change.
"If there's a catalyst that would cause them to revisit the metrics, it would give them a good opportunity to change the mix without making it seem like they had changed their mind because of pressure from investors," he said.
Among those calling for the deal to be dropped or revamped has been UniSuper, which has a 7.27 per cent stake in WRT.
Shareholders object to the conditions of the rejig, which would see WRT shareholders receive an $850m payout and Westfield Group shareholders receive 1000 securities in the new Westfield Corp and 1246 securities in Scentre Group for every 1000 Westfield Group securities held.
Westfield needs 75 per cent of shareholder approval.