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Deutsche Wohnen Drops LEG Offer, Vows to Fight Off Vonovia

  • LEG deal abandoned as shareholders balk at capital increase
  • Proxy adviser ISS sees Vonovia bid offering `superior value'
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Deutsche Wohnen AG, Germany’s second-biggest residential landlord, abandoned a 4.6 billion-euro ($5.2 billion) offer for LEG Immobilien AG to focus on defending itself against a bid from a larger competitor.

Deutsche Wohnen dropped the LEG proposal because it didn’t expect shareholders to approve a capital increase needed for the acquisition, the company said in a statement on Wednesday. It vowed to fight off the almost 10 billion-euro hostile offer from Vonovia SE to combine the two largest players in Germany’s real estate industry.