Australia's Westfield Group has declined to comment on media speculation that it is preparing to enter into a bidding war over Rotterdam-based peer Rodamco Europe. Westfield announced on Wednesday it was raising AUD$3 bn in the second largest share placing in Australia's history 'to finance the group's activities and future opportunities, in particular, its extensive development programme'.

Australia's Westfield Group has declined to comment on media speculation that it is preparing to enter into a bidding war over Rotterdam-based peer Rodamco Europe. Westfield announced on Wednesday it was raising AUD$3 bn in the second largest share placing in Australia's history 'to finance the group's activities and future opportunities, in particular, its extensive development programme'.

The Australian newspaper cited anonymous sources as saying Westfield had teamed up with Simon Group, the US mall operator - and possibly a big European investor - to discuss a counter bid for Rodamco. Last month, French property company Unibail tabled a EUR 10 bn offer for Rodamco Europe in move that would create Europe's largest publicly traded property company. Rodamco Europe owns 73 malls.

Westfield, the largest shopping centre operator in the world by market capitalisation, has 121 shopping centres valued in excess of EUR 38 bn. There are a further 19 projects under construction globally in which Westfield is investing EUR 3.4 bn, and a further AUD 10 bn of new projects in Australia, New Zealand, the US and UK over the next three years.

The Australian quoted Macquarie Bank analyst Toby Carroll who said the equity raising was a shift from Westfield's recent strategy. '

They haven't been raising capital since 2004 for the head stock, which is a better strategy from a listed shareholder's perspective in terms of increasing your return on equity.'

He said while the reduction in Westfield's gearing as a result of the raising - from close to 50% to about 35% - would fund the group's development proposals, the raising would provide it with excess capacity for potential takeover activity. 'There does seem to be some capacity there - does that mean there is an acquisition waiting?'