Hammerson takeover of intu in doubt, say reports

Reports over the weekend have thrown doubt over the proposed deal that would see shopping centre owner Hammerson buy counterpart intu to create a £21bn company.

Hammerson, which owns the Highcross Centre in Leicester, first revealed it was set to take over intu, which owns a Derby mall and the Victoria and Broadmarsh centres in Nottingham, last December.

However, Hammerson said last week that it turned down a £5bn bid from French operator Klépierre earlier this month “in less than 24 hours”.

The French company, which specialises in shopping centres, has until 16 April to make a firm intention to acquire Hammerson or to confirm it will not make a counter offer.

The Telegraph reported over the weekend that Klépierre has stepped up attempts to buy Hammerson, and “derail” the intu deal. The same reports saus that Klépierre held talks with Hammerson’s top shareholders, urging them to accept an offer that would see shareholders received 615p per share.

The reports says that Klépierre has argued that Intu’s portfolio would increase Hammerson investors’ exposure to UK retail, which is going through a period of particular upheaval at present, and that intu’s centres in mid-sized towns are threatened by the malaise on the high street.