Hammerson rejects takeover bid from French shopping mall rival
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London (United Kingdom) (AFP)
British shopping mall giant Hammerson on Wednesday rejected a sweetened takeover bid from French rival Klepierre, but said it would be open to a higher offer.
Hammerson, which like other shopping mall operators faces increased pressure from online retailers, received an initial offer from mammoth company Klepierre in mid-March.
In a statement published on the London Stock Exchange website, Hammerson said Klepierre's latest offer of 635 pence per share was "only a marginal increase" on the previous proposal of 615 pence.
The board of the British company rejected the earlier offer "on the basis that it very significantly undervalued Hammerson, its track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation", the statement said.
The new offer "is not at a price that justifies further engagement with Klepierre", it said.
However, "the Board remains open to discuss any proposal from Klepierre which properly reflects the value of the Company", it added.
Under UK law, Klepierre has until 5:00 pm on April 16 to make a firm offer, or to renounce its bid.
Klepierre's moves came after Hammerson agreed in December to buy its rival Intu to create a pan-European shopping mall business.
Hammerson owns Brent Cross shopping centre in north London and the Les Terrasses du Port in Marseille, southern France, in its portfolio, as well as Cergy 3 in northern Paris.
Klepierre meanwhile owns shopping malls across France, as well as centres in Italy, Sweden, Turkey, Germany, Denmark and Belgium.
© 2018 AFP