Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fonciere Paris France Rejects Offer by Its Largest Shareholder

Oct. 12 (Bloomberg) -- Fonciere Paris France SA, an office landlord in the French capital, rejected a takeover bid by its largest shareholder, calling the offer opportunistic.

Cofitem-Cofimur SA, backed by insurers Allianz SE and Covea SGAM, on Oct. 7 offered 100 euros ($137) a share and bid for the convertible bonds and warrants they don’t already own. Cofitem-Cofimur didn’t discuss the plan with either Fonciere Paris France’s management or other major shareholders in advance, the property company said today in a statement.

“The fact that the offer has been made at a time when international stock markets are severely affected by macro-economic events underscores its highly opportunistic nature,” Fonciere Paris France said.

A bid 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. Fonciere Paris France’s board and senior executives had supported that bid.

Covea, Fonciere des 6eme et 7eme Arrondissements de Paris 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.

To contact the reporters on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net; Simon Packard in London at packard@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.