Vonovia lowers acceptance threshold for Deutsche Wohnen bid

German residential landlord Vonovia has extended the deadline and lowered the acceptance threshold for its hostile takeover of rival Deutsche Wohnen.

The company, which last October announced a €9.92 bn bid for Deutsche Wohnen, is giving shareholders another two weeks to accept the offer, until 9 February.

Vonovia's Chief Financial officer Stefan Kristen said the company had so far secured a stake of 'significantly more than 20%'.

Vonovia has also lowered the acceptance threshold to 50% from 57% on an undiluted basis, or to 44%instead of 50% on a fully diluted basis.

'This shows that Vonovia has recognised that a significant majority of Deutsche Wohnen shareholders reject the hostile offer,' said Lars Wittan, chief investment officer at Deutsche Wohnen, commenting on the move.

If successful, the acquisition will create a colossus with more than 500,000 apartments and a market capitalisation of €20 bn.

The Federal Cartel Office, or Bundeskartellamt, approved the proposed €14 bn share and cash offer in December without imposing any conditions, such as the need to divest assets.

The tender offer was officially launched on 1 December. Vonovia is offering seven of its shares and €83.14 in cash for every 11 Deutsche Wohnen shares. This values Deutsche Wohnen at €26.46 per share.