Foncière des Regions has launched a €750m (£519m) bid for fellow French property company Bail Investissement.
It is as yet unclear whether the €31 (£21.43) per share bid is in cash, shares or a combination of both.
Analysts at Kempen said they expected a cash bid, with shareholder GE Commercial Finance Real Estate, which controls a stake of 25.99% in Bail, most likely to receive shares.
“If the bid is cash, it would value Bail at €1bn (£690m), but it is difficult to comment on this as we don’t yet know the bid terms. If it’s cash, it’s a reasonable offer,” said Kempen analyst Remco Vinck.
AXA Real Estate Investment Management has indicated that it would tender its 9.61% shareholding, while GE will work in cooperation with Foncière des Regions on the bid.
Under the terms of the bid agreement, a minimum acceptance level of 24.01% of the shares, excluding GE’s shares, will be required.
The €31 bid price represents a premium of 2.2% to the net asset value of Bail of €30.33 (£20.98) a share. Trading in the shares has been suspended.
References: EGi News 07/12/04
