Vonovia’s planned takeover of Deutsche Wohnen is proving to be complicated. Now a British fund has applied for an injunction.
In the struggle to take over Deutsche Wohnen, a British fund is trying to put obstacles in the way of the largest German real estate group Vonovia.
The Davidson Kempner Fund has applied to the Berlin Regional Court for an injunction. This should prohibit Deutsche Wohnen from issuing new shares and selling its own shares to Vonovia, as Davidson Kempner announced. According to his own statements, Davidson Kempner owns 3.2 percent of the share capital of Deutsche Wohnen and is also involved in Vonovia.
The fund accuses the two housing groups of circumventing the rights of shareholders. The board of directors of Deutsche Wohnen has taken a number of legally questionable measures, “the sole purpose of which is to help Vonovia gain control over Deutsche Wohnen,” the statement said. This significantly affects the right of shareholders to decide on the success of Vonovia’s takeover offer.
Deutsche Wohnen rejects allegations
Deutsche Wohnen rejected the allegations as “completely insubstantial”. Since 48.5 percent of the shareholders of Deutsche Wohnen had already offered their shares in Vonovia by last Friday, the measures attacked by Davidson Kempner would “in all probability never become relevant anyway,” said the Berlin housing company. A spokeswoman for the Berlin regional court confirmed receipt of the application. The responsible chamber is expected to decide on how to proceed next week. Vonovia did not want to comment.
Vonovia is trying in the third attempt to take over number two among landlords. The Bochum company failed twice because they were not offered enough shares in Deutsche Wohnen. In order to be successful this time, Vonovia boss Rolf Buch dropped conditions in the takeover offer, including the minimum acceptance threshold of 50 percent of the shares. The issue of new shares in Deutsche Wohnen is one way Vonovia could secure a majority in Deutsche Wohnen.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
