Hammerson shares shoot up 28% on takeover proposal

Hammerson shares shoot up 28% on takeover proposal

As of 10:03 GMT, Hammerson's share price had added 24.59 percent to 544.60p, as compared with a 1.20-percent slump in the benchmark FTSE 100 index.

Klépierre has revealed that it approached Hammerson on 8 March with an offer of 615 pence per share, a 40.7% premium on the British developer's then share price of 437.1 pence. The approach was on the basis of 50 percent in cash, and the other half in Klepierre shares. Shares in Intu Properties were flat at 204.00p.

'"The proposal from Klépierre is wholly inadequate and entirely opportunistic, ' says Hammerson's chairman David Tyler".

'Klépierre is asking our shareholders to accept a price for their Hammerson shares which is not only at a significant discount to their book value but includes a large element of paper in a company which in our view has a lower quality portfolio and lower growth prospects.

The board of Hammerson said it "strongly advises" shareholders to take no action.

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Shopping mall landlord Hammerson's (HMSO) protracted £3.4bn merger with Intu Properties (INTU) could be under threat as French real estate investor Klépierre makes a £5bn bid for the former business.

Hammerson said that it remained committed to the acquisition of Intu, saying it would offer "significant value" for shareholders, adding it would make Hammerson the United Kingdom market leader with 19 of the top 30 shopping centers.

With 794.2 million shares in issue, the offer would value Hammerson at around GBP4.88 billion.

Matthew Saperia, analyst at Peel Hunt, said: "Despite the board rejection [of the Kléppiere offer], Hammerson is now in play and the likelihood of its proposed merger with Intu Properties proceeding has decreased considerably".

It said a further announcement will be made "if and when appropriate".

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