GSW Promotes Its Top Managers to Joint CEOs as Wohnen Bid Looms

GSW Immobilien AG, the German residential landlord that lost its chief executive officer in July, will promote its two most senior managers to fill the position.

Chief Operating Officer Joerg Schwagenscheidt and Chief Financial Officer Andreas Segal will become co-CEOs, the company said in a statement today. GSW received a takeover bid from Deutsche Wohnen AG on Tuesday that values the company at 1.8 billion euros ($2.3 billion).

Bernd Kottmann resigned as GSW’s chief in June following investor complaints about the way he was hired. Deutsche Wohnen CEO Michael Zahn said this week that the company took advantage of the vacuum to make a bid for a competitor it has considered buying since before GSW’s initial public offering in 2011.

The acquisition would create Germany’s largest property company. Both landlords are based in Berlin, where price and rent gains have outpaced the rest of the country. Deutsche Wohnen owns about 90,000 apartments in large German cities including Berlin and Frankfurt, and GSW owns 60,000 homes in the German capital.

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