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Conwert says it remains neutral on Deutsche Wohnen bid

Published 25/03/2015, 10:04
© Reuters. The headquarters of Austrian properties group Conwert is pictured in Vienna
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VIENNA (Reuters) - Conwert (VI:CONW) will take a neutral stance on Deutsche Wohnen's (DE:DWNG) 1.2 billion euro (873 million pounds) takeover offer, it said on Wednesday.

The Austrian real estate company had said on Tuesday that the offer does not adequately reflect its outlook for this and next year.

"Yesterday's interpretation that we are against the offer is not right. We will act neutrally," said Kerstin Gelbmann, chairwoman of Conwert's administrative board.

"Yes, we think that our standalone company value is higher, yes we think that synergies were not reflected (in the offer), but we cannot predict how the share price will develop if the offer ceases to exist."

Deutsche Wohnen launched its cash bid at 11.50 euros per share last week and ruled out sweetening the price despite criticism from some Conwert shareholders.

Conwert's average share price over the past three years is 9 euros.

"I will leave it to shareholders to interpret this," Gelbmann said.

When asked whether Conwert would feel comfortable operating under Deutsche Wohnen, Gelbmann said the Austrian company is happy with its "standalone concept".

© Reuters. The headquarters of Austrian properties group Conwert is pictured in Vienna

Conwert is due to give its recommendation on the Deutsche Wohnen offer to shareholders by April 1.

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