Klépierre abandons Hammerson bid after numerous rejections

Klépierre has announced that it has abandoned its attempted acquisition of Hammerson after an improved offer was rejected for the second time this week.

The French firm said in a statement that it “does not intend on making an offer for Hammerson” after Hammerson’s board of directors rejected a £5.04bn offer.

The statement from Klépierre said: “Klépierre confirms that on 9 April 2018, Jean-Marc Jestin, the chairman of the executive board of Klépierre, met with the chairman of the board of directors of Hammerson, David Tyler, and made an increased proposal to Hammerson on a standalone basis of 635 pence per Hammerson share for the entire issued and to be issued share capital of Hammerson.

“The Increased Proposal represents a premium of 45% to Hammerson’s undisturbed share price of 437.10 pence per Hammerson share on 16 March 2018.

“The board of Hammerson did not provide any meaningful engagement with respect to the Increased Proposal and, after careful consideration, Klépierre has concluded that it does not intend to make an offer for Hammerson pursuant to Rule 2.7 of the City Code on Takeovers and Mergers.”

The increased bid followed an earlier failed £4.88bn offer last month, which led to Hammerson delaying their proposed £3.4bn takeover of British rivals Intu.

Under UK takeover rules Klépierre are now barred from making another approach for the company for six months.

The news now leaves Hammerson clear to complete their takeover of Intu however the situation still remains unclear.