Fonciere Paris France Advances on Offer From Cofitem-Led Group
Fonciere Paris France (FPF) SA, an office landlord in the French capital, rose by 7.9 percent after its largest shareholder led a group trying to increase their stakes in the company.
Cofitem-Cofimur (CFTM) SA, backed by insurers Allianz SE (ALV) and Covea SGAM, offered 100 euros ($136) a share and bid for the convertible bonds and warrants they don’t already own, according to a regulatory filing Oct 7. The stock advanced to the offer price in Paris trading today.
A offer by Fonciere des Regions SA that valued the Paris- based company at about 440 million euros, excluding debt, collapsed last month as a slide in stock markets distorted the terms of its share offer.
Covea, Fonciere des 6eme et 7eme Arrondissements de Paris (SRG) SA and Associations Mutuelles Le Conservateur pledged to buy shares if the offer resulted in Cofitem-Cofimur owning more than a 60 percent stake.
French rules prohibit any an investor or partners from owning more than 60 percent of a real estate investment trust, which pays no corporation and capital gains tax in return for distributing most of its net rental income to investors.
Fonciere Paris France will hold a board meeting on Oct. 12 to discuss the offer and appoint an adviser, it said in a statement today. The company’s board and senior executives, who supported Fonciere des Regions’ takeover bid, were unaware of the shareholders’ offer plans until the regulator announced them, according to the statement.
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