Hammerson’s merger talks with Intu said to have stalled - report
22 MAR 2018
Hammerson’s [LON:HMSO] takeover talks with rival UK property company Intu [LON:INTU] were said to have stalled, according to a speculative report in the Financial Times. The newspaper’s market report section did not cite a source for the rumour.
Traders cited by the report said that Hammerson would be more likely to be acquired by the French shopping mall company Klepierre [EPA:LI] if Hammerson’s proposed takeover of Intu collapses.
Klépierre on 19 March announced that it was interested in acquiring Hammerson in a cash plus shares deal worth 615p per share. Hammerson rejected the proposal, describing the non-binding offer as 'wholly inadequate and entirely opportunistic'.
Hammerson’s share price closed 28.4p up at 570.0p in London on Wednesday, 21 March, giving the company a market capitalisation of GBP 4.52bn (EUR 5.17bn).
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Hammerson jumped after rumours that talks had stalled over its proposed merger with sector peer Intu Properties. According to traders, a collapse of the Intu deal could leave Hammerson more vulnerable to a formal bid from Klépierre, which has until April 16 to clarify its intentions after making a 615p a share approach at the start of March.
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