Dexus takes shot at GPT over CPA bid

Dexus Property and the Canada Pension Plan Investment Board have thrown open the challenge to GPT over control of the Commonwealth Property Office Fund, saying its current intention is that the consortium will not accept the new offer.

However, the consortium added it retained the right to make a change to its original offer.

GPT’s offer is equal to $1.24 per CPA unit compared to the $1.21 equivalent from Dexus.

Market analysts believe the Dexus consortium will increase its share/scrip offer, by about 2.7 cents to defeat GPT.

Furthermore, Dexus said it would use its 14.9 per cent option in CPA as a blocking stake should GPT win the rest of CPA’s investors.

In a short statement today, Dexus also said it would vote against GPT’s proposal to sell $1.1 billion of assets to the GPT Wholesale Office Fund (GWOF).

‘‘Dexus reserves its rights to change its intention if new information about the GPT Bid is released to the market or the terms of the GPT Bid change,’’ the statement says.

‘‘CPPIB also confirmed it is committed to the Proposal, and if required, will extend the term of co-operation agreement, between CPPIB and Dexus to enable the proposal to be implemented. ‘‘The consortium is continuing with its due diligence on CPA.’’

This story Dexus takes shot at GPT over CPA bid first appeared on The Sydney Morning Herald.