Deutsche Wohnen Jumps on Possible Mid-Cap Spot: Frankfurt MoverDalia Fahmy
Deutsche Wohnen AG rose the most in five months in Frankfurt trading after MSCI Inc. said the company may join its Global Standard Mid-Cap Index if a planned takeover of a German competitor succeeds.
Deutsche Wohnen climbed as much as 4.8 percent to 13.77 euros, the biggest intraday gain since May 14. Shares of GSW Immobilien AG, the company that Deutsche Wohnen has offered to buy in a share exchange valued at 1.7 billion euros ($2.3 billion), gained as much as 5.1 percent to 33.47 euros, the most since Aug. 20.
The joint company’s market value would be big enough to qualify for a place in the mid-cap section of the MSCI Global Standard Indices, MSCI wrote in an e-mail to clients after the market closed yesterday. MSCI spokeswoman Jo Morgan said Deutsche Wohnen is currently listed on the company’s German small-cap index.
Deutsche Wohnen spokeswoman Manuela Damianakis declined to comment.
Deutsche Wohnen, Germany’s third-largest residential landlord by market value, on Aug. 20 announced a plan to buy its competitor and create Germany’s second-biggest homeowner by number of apartments. Both companies are based in Berlin, where price and rent increases have outpaced the rest of the country.
GSW’s management on Oct. 15 recommended that shareholders accept the takeover bid.