Hammerson’s board of directors have unanimously rejected a sweetened takeover offer worth £5.04 billion from French retail property giant Klépierre.
The British shopping centre firm said it had received a revised bid of 635p per share, consisting of 50 per cent cash and 50 per cent in new Klépierre shares.
Klépierre first approached Hammerson with a £4.88 billion last month, which was rejected as well.
The French firm has since held talks with Hammerson’s top shareholders to step up efforts to acquire it, prompting the latter to place its £3.4 billion tie-up with Intu on hold as it awaited clarity on a takeover approach from Klépierre.
Hammerson said the board rejected Klépierre’s revised £5.04 billion offer “on the basis that it very significantly undervalued” the company and its “track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation”.
“Having assessed the revised proposal with its advisers, believes it is not at a price that justifies further engagement with Klépierre and has unanimously rejected it,” Hammerson said in a statement.
“The board remains open to discuss any proposal from Klépierre which properly reflects the value of the company.”
Hammerson chairman David Tyler added: “The board has considered the revised proposal from Klépierre carefully.
“At 635p, it is only a three per cent increase on the previous proposal and continues very significantly to undervalue the company.”
Hammerson said Klépierre now has a deadline of April 16 to either put up a formal offer or to leave it.
Hammerson is the owner of Bullring in Birmingham, Cabot Circus in Bristol, Victoria Gate in Leeds, Westquay in Southampton and Brent Cross in London.