Blackstone Makes Offer for Stockholm Landlord D. Carnegie

Blackstone Group LP made a mandatory bid for Swedish residential landlord D. Carnegie & Co. AB after increasing its stake to more than 30 percent.

Through its subsidiary Vega Holdco Sarl, Blackstone offered 100 kronor ($11.3) for each D. Carnegie share, according to a statement on Monday. The bid, which is lower than Friday’s closing share price of 102.5 kronor, values the Stockholm-based company at about 7.2 billion kronor. In a separate statement later on Monday, Vega Holdco said said it now controls 41 percent of the shares and 53 percent of the voting rights in the company.

D. Carnegie said its shareholders should reject the bid. In July, Blackstone agreed to buy a 32 percent stake in the company from three of its biggest shareholders at the same price, a deal that triggered the offer for the rest of the shares.

Shares of the company rose 0.2 percent to 102.75 kronor in Stockholm trading as of 1:54 p.m. local time, paring earlier gains of as much as 2.9 percent.

Swedish apartment prices jumped 3 percent in September, up from a 1 percent gain in August, according to Svensk Maeklarstatistik AB. That suggests that measures introduced by the financial regulator to force homeowners to pay down their mortgages faster aren’t slowing the market.

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