Dundrum Centre owner's look to ditch takeover of Intu

Dundrum Centre owner's look to ditch takeover of Intu

However, Hammerson said it would not hold its investor meeting if Intu and Britain's Takeover Panel agree.

Hammerson has pulled out of its proposed takeover of shopping centre giant Intu after deciding it is "no longer in the best interests of shareholders".

"The equity market now perceives a heightened level of risk associated with the United Kingdom retail property sector as a whole", the company said in a statement on Wednesday.

No date has been set for a vote because Hammerson delayed publication of documents relating to the acquisition earlier this month after receiving a takeover approach from the French shopping centre firm Klépierre.

"The board of Intu is entirely confident of Intu's commercial future and prospects", it said, adding that a trading update issued on Tuesday had "underlined the key strengths of Intu's business".

Intu said Hammerson's explanation for calling off the merger was "unsatisfactory" as both companies had issued strong trading updates in recent days. Intu added it had been pursuing the deal "in good faith". Hammerson had faced opposition to the acquisition from some shareholders and the plan was thrown off course when Paris-based landlord Klepierre SA made a separate offer for Hammerson. It is clear that the heightened risks to the Intu Acquisition now outweigh the longer-term benefits.

Hammerson said in a market announcement: "The Hammerson Board firmly believed in the strategic rationale of combining Intu's portfolio with Hammerson's, under the leadership of the Hammerson management team, and the opportunity it provided for value creation in the medium to long term".

Capitals' OT win cuts into Jackets' series lead
He fits in well with the Blue Jackets system, especially with Boone Jenner , and will likely have a much smaller contract. He stopped all 30 shots he faced to record his second shutout of the series , both of them by a 1-0 margin.

"After careful consideration, the board has concluded it is no longer in the best interests of shareholders to carry out the Intu Acquisition", Hammerson Chairman David Tyler said.

Hammerson Plc withdrew its offer to buy Intu Properties Plc, a deal that would have created the U.K.'s biggest shopping mall owner, drawing a rebuke from the smaller company.

"This has led to a disconnect between the company's share price and the fundamental value of its business and prospects", it said.

The company will now focus on accelerating delivery of value for shareholders from its existing business. This could include investing in higher-growth segments such as premium outlets, and making some disposals.

Last week, France's Klepierre dropped its hostile £5bn takeover bid for Hammerson.

Hammerson shares unsurprisingly fell on that news although they have bounced on today's developments, up 2.5% this morning to 506p.

Shares in Hammerson were 2.8% higher 507.20p in London and 2.6% higher at ZAR87.00 in Johannesburg on Tuesday.

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