Top Hammerson investor snubs Intu deal

BRITISH shopping centre owner Hammerson’s proposed takeover of rival Intu hit a stumbling block last night, after a top three shareholder said it would vote against the deal at an upcoming meeting.

Dutch pension fund APG wrote to the chief executive and chairman of Hammerson saying it had “substantial concerns” over the deal, citing the current retail environment. “Furthermore we believe the proposed acquisition will significantly dilute Hammerson’s high quality portfolio,” the pension fund said. APG holds a 7.22pc stake in Hammerson. The £3.4bn takeover would give Hammerson control of most of the UK’S prime shopping centres, which chief executive David Atkins has said is the best long-term decision for the company.

However, many are sceptical about how attractive a proposition increasing Hammerson’s exposure to the UK market is, given the current malaise on the high street. Stagnant wages and rises in the cost of living have squeezed consumers, leading to concerns over falling footfall and fewer retail tenants.

News of the shareholder opposition came just hours after French shopping centre company Klépierre walked away from its own £5bn proposed takeover of Hammerson. Earlier this week, Hammerson rejected a second approach from Klépierre at 635p per share, valuing it at around £5.04bn, having rebuffed a first offer at 615p last month. Klépierre had until 5pm on Monday to formalise the offer, but confirmed yesterday that it does not intend to do so.

David Brockton, analyst at Liberum, said: “Klépierre’s decision to walk away from a bid could still leave Hammerson’s management and shareholders in an unfortunate short-term position.

“The market has clearly taken a negative view of Hammerson’s proposed acquisition of Intu.”