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Deutsche Wohnen Slumps After Offering to Buy LEG in Record Deal

  • Residential landlord offers 3.3 of its own shares per LEG one
  • LEG's board accepts offer valuing company at 4.6 billion euros
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Deutsche Wohnen AG, Germany’s second-largest residential landlord by market value, dropped the most in almost five years after offering to buy competitor LEG Immobilien AG as it strives to keep up with market leader Vonovia SE.

Deutsche Wohnen shares fell 6.9 percent to 22.4 euros at 10:15 a.m. in Frankfurt, after making the bid yesterday which values LEG at 4.6 billion euros ($5.2 billion) excluding debt. LEG climbed as much as 9.2 percent to 76.72 euros.