GPT set to resume takeover talks with Australand but block share trade still possible: Street Talk

GPT is set to resume negotiations with Australand five months after a $2.8 billion bid to acquire Australand’s investment property portfolio and commercial and industrial businesses was rejected.

An alternative proposal for a block share trade of Singapore-based majority shareholder CapitaLand’s 60% holding of Australand is reportedly though still a “firm” possibility, according to the Australian Financial Review’s Street Talk column.

Apparently the block trade proposal caused tempers at GPT to “hit boiling point” last week with the commercial property landlord convinced it had been played a “stalking horse” to encourage CapitaLand’s exit.

There has been no official announcement from either GPT or Australand about a resumption of talks.

GPT was expected to make a higher offer for Australand in February after its annual results were published, but has yet to do so, perhaps caught up in resolving its class action lawsuit with a group of investors, only settled today with a $75 million conditional agreement.

No date has been set for the resumption of negotiations, according to Street Talk, but it is expected that Australand will demand a higher price than the initial offer.

GPT’s December bid of $2.8 billion was $140 million above the June 2012 book value for the assets, but would leave shareholders holding the residential business as a standalone entity.

CapitaLand undertook a strategic review of its investment in Australand in January last year.