Eurosic fails to outbid rival Gecina for Fonciere de Paris

Eurosic has already built up a 27% stake in FdP, which owns a €2.6 bn portfolio focused on prime assets in central Paris and the Western Crescent. The company launched a public tender offer of €136 a share for the group back in April but its offer was countered last week by French listed office property group Gecina.

Gecina is offering €150 a share for the office landlord, valuing FdP at about 10% more than Eurosic. Alternatively, the company is offering six Gecina shares for every FdP share, or a 12% premium on Eurosic's offer.

'Our offer is part of the continued growth dynamics experienced by Eurosic for five years,' said Perchet Yan, CEO of Eurosic. 'During this period we have built portfolios and teams by focusing on three strategic pillars: Parisian office buildings that offer security and sustainability, restructuring operations, also in Paris, which provide a strong element of value creation and finally secure performance of assets in major regional cities and in the health and leisure sectors.'

He added: 'It is this business plan that we offer to the shareholders of FdP. We offer them [the opportunity] to become shareholders of a company resulting from a merger of equals, always centered on Paris offices, with a significantly improved performance.'

A merger between Eurosic and Foncière de Paris would create a combine with a portfolio valued at over €5 bn, 85% of which located in Paris.

'The merger should be facilitated by the fact that companies of comparable size and teams share the same business vision,' Eurosic said in a statement.

Gecina said last week that FdP's assets are ‘highly complementary with Gecina’s, offering access to central and attractive areas of Paris (notably the 6th, 7th, 9th and 10th districts) where Gecina currently has a limited footprint'.

Gecina's offer is conditional upon an acceptance level of over 50% of FdP’s share capital and voting rights.