DUESSELDORF (Reuters) -Europe’s biggest real estate takeover could fall through as Germany’s Vonovia may not have secured the backing of enough shareholders in its target Deutsche Wohnen, two sources familiar with the matter told Reuters.
The deadline for Deutsche Wohnen shareholders to tender stock was midnight on Wednesday and Vonovia needs to collect at least 50% of its rival’s shares for the deal to proceed.
Vonovia said on Friday that the tendered shares were still being counted and a result was expected on Monday.
As of Tuesday night, Vonovia had the backing of 34% of Deutsche Wohnen shareholders for the takeover, which would create a $22 billion property giant with 550,000 apartments.
One of the people familiar with the matter said some hedge funds, which hold about a third of Deutsche Wohnen’s stock, may not have tendered shares in the hope the deal would still go through and they would have to be bought out at a higher price.
Vonovia has offered 52 euros per share for Deutsche Wohnen, whose owners would retain the rights to a 1.03 euro dividend.
Shares in Deutsche Wohnen slipped to the bottom of the DAX blue-chip index by 1000 GMT on Friday, trading 1.7% lower, at 50.08 euros, below the offer price.
Vonovia was down 1.2% at 58.52 euros.
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