Vonovia Deal Offers Way Out for Elliott’s Deutsche Wohnen Bet
- Hedge fund took 3% stake mid-2021, when shares were higher
- Vonovia to offer choice between dividend and own stock
This article is for subscribers only.
German residential landlord Vonovia SE said it’s prepared to offer sweeteners to minority shareholders of a subsidiary in exchange for tighter control, following a yearslong campaign by activist shareholder Elliott Investment Management LP.
Vonovia agreed to enter discussions to conclude a so-called domination and profit and loss transfer agreement involving its Deutsche Wohnen SE unit, according to a statement late on Wednesday. Under such a deal, minority investors of Deutsche Wohnen — including Elliott — could sell their shares in exchange for newly issued Vonovia stock and receive an annual compensation payment.