Deutsche Land rejects Black Sea bid

Deutsche Land's board has turned down Black Sea Global Properties' £40 mln (EUR 44 mln) takeover offer, saying it was 'unable to recommend it' to shareholders.

The London-listed German property investor said the offer did not reflect 'any control premium over and above the 12p per share that BSGP paid when it acquired its minority stake in the placing that took place in June 2009.' Deutsche Land will post a detailed response to shareholders as soon as was practicable, it said.

Last week Romania-based investor BSGP launched a 12p per share offer to buy Deutsche Land, after having raised its stake in the company to 32.1%. Including Deutsche Land's net debt of £382 mln (EUR 422 mln), the deal valued the company at £422 mln (EUR 466).

Deutsche Land owns a portfolio consisting of 54 properties, including the Main Airport Center in Frankfurt. The portfolio was valued at EUR 513 mln at end-June 2009, a 6.3% decline compared to its value of EUR 548 mln at year-end 2008.