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FRANKFURT, April 15 (Reuters) - A top executive at German real estate company Aroundtown said its proposed 1.57 billion euro ($1.88 billion) takeover bid, made with partner CPI Property, for Globalworth Real Estate was attractive for shareholders but he did not rule out lifting the offer.
“Whether the consortium deems it necessary to increase the offer is currently not yet decided,” said Aroundtown’s Chief Capital Markets Officer Oschrie Massatschi. He responded in writing to a question by Reuters on whether the proposed 7 euros per share was the final word.
“We believe that the current offer reflects an attractive premium,” he added.
CPI and Aroundtown, who between them already own 51.5% of Globalworth, would make their bid contingent on tenders from shareholders owning 90% of Globalworth’s equity, said Massatschi, though he added the suitors had the option to lower that hurdle.
Asked whether the consortium was ready to proceed even against opposition from Globalworth’s management, Massatschi said the deal proposal for now had a “non-recommended” status but the consortium was hoping for constructive talks with the target’s management.
CPI and Aroundtown made their 7 euros per-share approach on Wednesday, prompting Globalworth to “strongly advise” its shareholders not to take any action while it evaluates the offer. ($1 = 0.8363 euros) (Reporting by Elke Ahlswede Writing by Ludwig Burger Editing by Chris Reese and Susan Fenton)