EU inquiry deadline for Hypo Real Estate buy of Depfa Sept 28 |
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Tue, 28 Aug 2007 10:19
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BRUSSELS (Thomson Financial) - The European Commission said the deadline for its inquiry into Hypo Real Estate Holdings AG's proposed 5.7 bln eur acquisition of Dublin-based Depfa Bank PLC is set for September 28.Hypo Real Estate is offering 6.80 eur and 0.189 new Hypo Real Estate shares for each Depfa share, valuing each share of Depfa at 16.14 eur.To fund the purchase Hypo Real Estate will also increase its capital by about 50 pct by issuing 67 mln new shares, meaning some 58 pct of the purchase price will be covered by new equity.The remaining share of the purchase price will be in cash, which Hypo Real Estate plans to raise through a 450 mln eur mandatory convertible bond with one year maturity.Depfa's shareholders will vote on the planned merger in an extraordinary shareholders' meeting in September. Shareholders representing at least 75 pct of Depfa shares must approve the merger for it to go through.The takeover will take place by way of a scheme-of-arrangement under Irish law, the Munich-based company said in a statement.Hypo Real Estate said it expects the deal to close in October, while at the same time ruling out taking part in a bidding war, should a counter-offer for Depfa be made as market rumours emerged that Franco-Belgian banking group Dexia SA may bid for the bank.Depfa Bank will remain based in Dublin, and the total number of employees of Depfa and Hypo Real Estate will remain the same, Hypo Real Estate said.nina.chestney@thomson.comnc/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Dexia declines comment on market rumours of counter bid for Depfa 