FPF rejects Allianz-Covea's bid as hostile

Paris-focused office landlord Foncière Paris France (FPF) has rejected a bid by Paris Hotels Roissy Vaugirard (PHRV) saying 'it does not present any advantages' for the business.

PHRV, which is controlled by insurers Allianz and Covea as well as FPF shareholder Cofitem-Cofimur, on Friday filed a EUR 100 per share offer for FPF's business, representing a 26% discount to net asset value per share of EUR 135.19 per share and a 10.6% discount to the closing average share price in July 2011.

'The board is surprised by the presentation of this unsolicited offer, for which there was no prior discussion with management or other main shareholders, [...] and can only conclude that it is a hostile bid,' FPF said in a statement on Wednesday.

FPF discarded PHRV's offer saying 'it does not propose any industrial project or any alternative strategy' and arguing that it is also 'lacking in clarity as to its real objectives'. 'The fact that the offer has been made at a time when international stock markets are severely affected by macro-economic events underscores its highly opportunistic nature,' FPF added.

Under the terms of the proposed acquisition, PHRV committed to buy all the FPF shares and debt which it does not already own alone or in concert with Cofitem-Cofimur. Currently, PHRV individually owns 5.85% of FPF's share capital, and as much as 24.37% in concert with Cofitem-Cofimur, whose majority shareholders are Allianz and Covéa.

PHRV, which is being advised by Natixis, is controlled by Allianz (31.4 %), Covéa (31.4 %) and Cofitem-Cofimur (31.1 %).

The move comes a month after Fonciere des Regions said its EUR 460 mln bid for FPF would not go ahead due to volatile market conditions. The operation - which collapsed after a slide in stock markets distorted the terms of the share offer - had the support of Fonciere Paris France's board and senior executives.