ROUNDUP 2: Vonovia fails in takeover battle for German residential – FAZ – Frankfurter Allgemeine Zeitung

(new: statements from the press and from LEG)

BOCHUM (AFX) – The dream of a mega real estate group is lt Vonovia &; VNA.ETR & gt; burst: The Group, with its plans for hostile takeover of smaller rival German residential & lt; gt DWNI.ETR &; failed. Vonovia boss Rolf Buch admitted on Wednesday, the acceptance rate for the billion offer had taken place after preliminary figures only around 30.4 percent. DAX.ETR & gt;; -Konzern missed required minimum acceptance rate of 50 percent, significantly

The management of Deutsche Wohnen had vehemently resisted the takeover and was now relieved about the outcome of the order was the lt of the Dax &. four-month struggle: “Our arguments against the transaction convinced the market”, company chief Michael said number. Vonovia had hoped for from the merger save millions about by lower administrative expenses and cost advantages in the maintenance of the buildings.

‘HIGHER PRICE WAS NOT JUSTIFIED’

For a success of the 14 billion-euro takeover bid Vonovia could cement its market leadership in the German property market for years. It would have created a new apartment giant with more than 500 000 units. At the stock exchange the end for the Vonovia plans was welcomed. . German Wohnen shares gained in the afternoon by almost four percent, Vonovia shares surged by more than five percent in the amount of

Vonovia boss Rolf Buch was disappointed: “A value-creating possibility to facilitate market consolidate, does not take place. ” A higher offer as they had demanded some investors had been impossible in his view. In particular, the assessment of the rental market Berlin had been different. “We do not believe that Berlin will develop as London or Paris,” added CFO Stefan Kirsten.

VONOVIA WILL ALSO ONLY CONTINUE TO GROW

But the failure of the takeover plans made the Vonovia boss also the recent stock market turmoil responsible. Many large investors wanted in such troubled times permanently have access to their shares. The cost of the bidding process should be in the small double-digit million range, said book. An exact amount the company intends to call during the presentation of the annual results on March 3.

According to current experiences of managers concluded a takeover offer for another listed company in the foreseeable future from. Rather Vonovia will now continue on its established course the only major real estate company with a nationwide orientation. The Group dispose even without German residential and good growth opportunities. The investment program in the areas of “energy saving”, “age-based living” and “New” is a sustainable source of internal growth.

INDEPENDENCE OF LEG IMPORTANT

In addition, the competitors stay LEG remain an independent, publicly traded company, said book. The company is an important partner for Vonovia. In September German residential and LEG had announced their intention to merge. Here, the Berlin real estate company should be responsible in the merger.

The Tenants’ Association North Rhine-Westphalia was pleased with the failure of Vonovia plans. The chairman of the federation, Hans-Jochem Witzke told Deutsche Presse-Agentur: “We believe that a further concentration in the housing market does not help the tenants and also does not help that more apartments will be built.” / Rea / jha / mne / he