April 17, 2015 / 6:36 AM / 4 years ago

UPDATE 3-Property battle between CA Immo, Immofinanz fizzles out

* CA Immo, 01 get extra 1.6 pct of Immofinanz in tender

* Had wanted an extra 13.5 percent

* Immofinanz dropped CA Immo counteroffer

* Deutsche Wohnen’s Conwert takeover offer failed (Adds Immofinanz shareholder vote, CEO comment, shares)

By Shadia Nasralla

VIENNA, April 17 (Reuters) - A third German-Austrian real estate battle fizzled out in as many days on Friday, as Austria’S CA Immo and its partner O1 Group fell far short of their targeted stake in bigger rival Immofinanz .

CA Immo and Russian investor Boris Mints’s O1 got just over a tenth of the additional 13.5 percent stake they had aimed for, CA Immo said on Friday, hours after Immofinanz dropped a counteroffer for 29 percent in CA Immo.

Immofinanz Chief Executive Eduard Zehetner thanked shareholders for shunning the tender and won loud applause at a meeting that approved halving to 15 percent the threshold at which any shareholder would have to make an offer for the whole business — thus forcing the hand of would-be stakebuilders.

“We have won the battle but not the war by a long shot,” he said, declining to rule out the prospect someone else might bid.

The anticlimax in the Immofinanz-CA Immo battle followed the failure of Deutsche Wohnen’s 1.2-billion-euro ($1.3 billion) bid for Austria’s Conwert.

The head of Immofinanz’s spin-off Buwog said he was still interested in Conwert, according to Austrian newspaper Der Standard.


CA Immo and O1 have a 6.08 percent stake in Immofinanz after getting an extra 1.6 percent via a 2.80 euro per share tender, worth up to 422 million euros.

The pair, now the second-largest shareholder in Immofinanz, said they would evaluate their next steps.

CA Immo CEO Bruno Ettenauer sees an imminent change at the top of Immofinanz as a potential way out of a clash of personalities between the groups, paving the way to create a central European real estate powerhouse.

CA Immo, which had been shrinking itself in recent years, wanted to boost its portfolio with Immofinanz, whose shares are cheap compared with property rivals.

CA Immo’s 3.8-billion-euro portfolio focuses on office properties and Immofinanz’s 6.8 billion euro holdings centre on offices and retail. Both operate across Germany, Austria and eastern Europe.

Immofinanz has been hit by exposure to Russia, where its five shopping centres and a logistics centre generate around a third of rental income.

Immofinanz stock fell as much as 4 percent on Friday, and was off 2.8 percent at 2.748 euros by 1200 GMT, while CA Immo shares fell 3.6 percent to 16.53 euros.

Pointing to CA Immo’s share price, Zehetner told CA Immo representatives at the shareholder meeting: “You don’t need to worry about us. If at all, be worried about your own company.”

$1 = 0.9281 euros Additional reporting by Michael Shields; Editing by Mark Potter

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