French shopping centre operator Klepierre has abandoned a £5bn (€5.7bn) bid for Hammerson, the UK and Irish company that controls Dundrum, Ilac, and Swords shopping centres.
Hammerson shares slumped 9%, valuing the London-listed property firm at €4.17bn. Klepierre shares climbed 3.5% in Paris, valuing it at over €10.89bn.
Hammerson, which in Britain is best known as the owner of Birmingham’s Bullring, is now free pursue its own acquisition of shopping centre operator Intu.
Hammerson’s deal with Intu had been met by scepticism from Hammerson investors as it increased the company’s already high exposure to a squeezed UK retail sector.
Klepierre’s decision to scrap its unsolicited bid comes after a sweetened offer of 635p a share, split equally in cash and stock, was rejected.
The increased proposal represented a premium of 45% to Hammerson’s share price before the French company disclosed its initial approach.
Ireland accounts for around a 10th of Hammerson’s property value.
With Allianz, Hammerson owns half of Dundrum Shopping Centre; a half share with Iput and Irish Life in the 46,000 sq m Swords Pavillions; and, with Irish Life, half of the 30,000 sq m Ilac Centre.
Hammerson also controls the nearby 1916 battlefield site. It owns, outright, the Abbey Retail Park in Belfast and has a significant minority stake in the Kildare Village.
Reuters and Irish Examiner staff