Deutsche Wohnen Says It Can’t Increase Offer Price for Conwert

Deutsche Wohnen AG, which aims to buy Conwert Immobilien Invest SE for 11.50 euros ($12.20) a share, said the price it’s offered is legally binding and won’t be raised.

The bid was made in a binding offer document and the company would expose itself to lawsuits if it changed the terms, according to Deutsche Wohnen Chief Financial Officer Andreas Segal. Conwert’s stock has been trading above 11.50 euros since the offer was made on Feb. 15, indicating that shareholders expected a higher bid.

“As far as we’re concerned, this puts an end to the speculation,” Segal said on a call with reporters Wednesday.

Berlin-based Deutsche Wohnen published its formal offer for Vienna-based Conwert on Wednesday, saying it must receive approval from shareholders representing 50 percent plus one share by April 15 for the deal to succeed.

Deutsche Wohnen, Germany’s second-largest residential landlord, plans to buy Austrian competitor Conwert for about 980 million euros. Investment firm Petrus Advisers LLP, which owns 6.7 percent of Conwert according to a Nov. 11 filing said the price “must be a mistake.” Shareholder Alexander Proschofsky, who last year said he owned 1.5 percent of Conwert, said the price “doesn’t represent the fair value in any way.”

Deutsche Wohnen’s price has been accepted by Conwert’s biggest shareholder, the Haselsteiner Familien-Privatstiftung, which agreed to sell a 19 percent stake, and by the Ehlerding family which will tender its 6.6 percent holding.

Conwert fell as much as 4.7 percent in Vienna trading, the most in a two years. It was down 2.3 percent at 12.12 euros as of 10:28 a.m. Deutche Wohnen was down 0.7 percent at 24.22 euros.