GROUPE SFPI : FPF seeks negotiated solution

jfbrener

15 déc. 2011 •13:55

with bidders.

14 December 2011, 07:38 PM

French REIT/SIIC Foncière Paris France is now seeking a negotiated solution with insurance groups Allianz and Covéa over their hostile bid for the company.
Allianz and Covéa's Paris Hôtels Roissy Vaugirard unit is offering €110 a share for FPF, having improved on an earlier €100 per share initial bid – but FPF initially rejected both. CEO Jean-Paul Dumortier told AFP recently though: “We want to look for a consensus with PHRV and the other shareholders. It is not only a question of price but also a matter of the company's strategy." A shareholders meeting on 8 December rejected FPF board proposal for a free warrants issue intended to obtain a further increase in the offer price, and while a majority of shareholders voted in favour of its buyback of 25% of the capital at €117 per share, the majority fell short of the two-thirds required to go ahead. The warrants plan was approved by 48.3% of shareholders and the buyback plan by 62.2%. FPF said PHRV was able to block both resolutions as a result of its recent off-market purchases of FPF shares, which took PHRV and partner Cofitem-Cofimur's combined stake to 29.5%.
The FPF board formally rejected the improved bid ahead of the shareholders meeting, saying it still does not represent a fair price, with the €110 on offer representing a 19.6% discount to its end-June EPRA NAV. FPF is therefore now looking to persuade PHRV to enter a constructive dialogue and offer a price more closely aligned with its intrinsic value. It has also invited Cofitem-Cofimur to assist in seeking a solution. French markets authority AMF has given the go ahead for PHRV's offer but is still to set a timetable.



http://www.pie-mag.com/articles/2349/french-fpf-seeks-negotiated-solution-wi th-bidders/