Takeover bid for DTZ bid aborted due to financial turmoil

French family run group St George Participations (SGP) has ended talks about a possible offer for listed international real estate broker DTZ due to the global financial turmoil.

'The discussions between SGP and DTZ have now been terminated and SGP confirms that it has decided not to proceed further with an offer for DTZ,' SGP said in a statement on Monday.

SGP, which owns about 55% of DTZ, had been given a deadline of 17 October to make an offer for DTZ. The French family, acting in concert with French property adviser BNP Paribas, had been in discussions with DTZ since early May about a potential bid, but takeover talks failed to progress due to ongoing instability in financial markets.

'The independent committee of the company board, comprising the directors other than those nominated by SGP, will take action in respect of the strategic options available to DTZ,' the broker said in a response to the SGP statement.

'The external environment has contrived to prevent the considerable efforts of many people over the past months to consummate a transaction,' commented DTZ's chairman Tim Melville-Ross.

DTZ also announced that it has agreed with SGP and the company's bankers, Royal Bank of Scotland (RBS), the provision of an additional revolving credit facility totalling up to £10 mln. This facility will be provided equally by SGP and RBS and is in substitution for the £10 mln undrawn mezzanine facility between the company and SGP.

DTZ shares were down 12.62% to £23.81 shortly after the announcement.