* DTZ seeks up to 55 million pounds via share placing
* Shares slide 19.5 percent by 1100 GMT
(Adds details, shares)
By Sinead Cruise
LONDON, Dec 19 (Reuters) - Shares in real estate agent DTZ tumbled more than 19 percent on Friday after it revealed plans to raise up to 55 million pounds via share sales designed to galvanise its ailing business from a savage property slump.
DTZ, which operates in 162 cities worldwide, announced proposals for a firm placing of almost 100 million new shares to the group's largest shareholder Saint George Participations and a further placing and open offer of 104 million new shares, both priced at 27 pence each.
The company said the equity-raising programme was intended to ensure the business was appropriately capitalised to better withstand further market deterioration.
Shares were trading at 23.75 pence by 1100 GMT against a 0.9 percent dip in the FTSE 350 Real Estate Index.
"In the light of the unprecedented and uncertain market conditions in which we all are operating, it continues to be difficult to predict how markets will develop," said DTZ Chairman Tim Melville-Ross, adding that the board would not recommend an interim dividend.
"Markets and industries worldwide are clearly experiencing the worst trading conditions that any of us can remember," he said.
In the six months to end-October, DTZ said its net debt more than doubled to 74.6 million pounds from 33.7 million pounds at April 30. It posted a group pretax, pre-exceptionals loss of 9 million pounds versus a 12.5 million pound profit in the corresponding period in 2007.
DTZ said a famine in real estate finance, which had impacted its North American and UK business arms most dramatically in previous months, was now taking a toll on all its international operations. As a result, group revenues on a like-for-like basis fell 17.5 percent to 184.3 million pounds.
As part of a cost-cutting drive that has already seen global headcount fall by 5 percent, DTZ said a review a number of its under-performing operations was underway. It said ongoing restructuring initiatives would save a further 15 million pounds in 2009/2010, doubling anticipated savings of 15 million pounds in 2008. (Additional reporting by Kumar Alagappan in Bangalore; Editing by Jon Loades-Carter) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)