AIM-listed Deutsche Land has again rejected a potential takeover approach from Prostar Germany as being too low. Prostar is headed by Jonathan Elkington, a co-founder and former director of Deutsche Land.
AIM-listed Deutsche Land has again rejected a potential takeover approach from Prostar Germany as being too low. Prostar is headed by Jonathan Elkington, a co-founder and former director of Deutsche Land.
Prostar Germany initially contacted the German property investment company in November 2008 and said the indicative offer price would be lower than 15p per share. Deutsche Land announced at end-January that the offer was 'inadequate'.
In a regulatory release on Wednesday, Deutsche Land said the two sides met on 4 February and Prostar Germany reiterated that its indicative offer price would not exceed 15p per share. Prostar said it was unable to place a value on Deutsche Land's shares until it had completed due diligence. This week Prostar said that it didn't expect its offer would be lower than 8p per share.
Deutsche Land rejected this overture. 'It is the board's view that an indicative offer of 15p per share is inadequate and therefore that none of Prostar's proposals are in the best interests of shareholders and therefore that they do not represent a basis upon which to continue discussions with Prostar,' the company said.
Deutsche Land's share price was down 2.2% in midday trading on Wednesday at 5.5p.
