Germany’s largest housing group Vonovia wanted to buy Deutsche Wohnen. But the shareholders have thrown a spanner in the works. Vonovia boss Buch comments.
After the failed takeover of Deutsche Wohnen, the costs at Europe’s largest real estate group Vonovia are kept within limits, according to the company.
Most of the costs only arise when a deal has been completed, said CEO Rolf Buch the “Handelsblatt”. “For example, the banks are paid on a performance-related basis – so now they don’t get anything.” In addition, the Deutsche Wohnen shares bought by Vonovia are worth more than the group has in the book, said the manager. “The financial damage to Vonovia should therefore be limited.”
The Bochum group wanted to take over Deutsche Wohnen from Berlin for 18 billion euros and thus merge with the number 2 in the industry. Deutsche Wohnen boss Michael Zahn was supposed to be Buch’s deputy. On Friday, however, it became known that Vonovia was unlikely to be able to secure the necessary 50 percent of the shares. “Of course that’s annoying, and of course it hurts – and together the companies would have been stronger than alone,” said Buch now. But Vonovia also has qualities on its own. There are other ways to grow.
The head of the Dax group attributed the failure to hedge funds that only decide at the last minute. The number of Deutsche Wohnen shares they offered was too small. “That was the crux of the whole transaction: That everyone was so sure. Some gambled too much. ” Everyone wants to contribute as little as possible and hope that they will get more for the shares that have not been tendered. “Apparently someone miscalculated.”
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.
