Tantrum from French bidder as it gives up on Hammerson
FURIOUS French landlord Klépierre today walked away from a £5 billion swoop for Hammerson, and slammed the British shopping centres giant for a lack of “meaningful engagement”.
The exit follows a four-week showdown that has seen Hammerson, which is behind the Brent Cross mall, rebuff 615p and 635p approaches.
Hammerson also froze its £3.4 billion takeover plan for smaller UK rival Intu, a deal which today looked increasingly in doubt.
Klépierre, advised by Goldman Sachs and Citi, had until this Monday to make a firm offer.
However, it said today: “The board of Hammerson did not provide any meaningful engagement with respect to the increased proposal.”
The French firm “concluded that it does not intend to make an offer”. Shares in FTSE-250 landlord Hammerson plunged 65.2p, or more than 12%, to 454.8p.
Klépierre shares edged up in Paris, as investors appeared relieved it would not be entering the tough UK retail market.
Birmingham Bullring landlord Ham- merson has previously said the offers undervalued it, and insisted its assets a re wo r t h a n e s t i ma te d 7 9 0 p p e r share.
Analysts expect the board will now review whether to press ahead with the all-share takeover of Lakeside owner Intu, unveiled in December.
Shareholders, some of which also have a stake in Intu, will have to be convinced that the creation of a megalandlord, with strength to compete with online competition, is more attractive than what Klépierre was proposing.
Barclays analyst Sander Bunck said: “Hammerson shareholders know that the company has become an M&A target and can potentially crystallise more value on a standalone basis.”
The collapse is a blow for US shopping malls tycoon David Simon, whose Simon Retail owns 20% of Klépierre and has attempted several takeovers.