German property group Deutsche Wohnen has scrapped its planned acquisition of smaller domestic rival LEG because it failed to win enough shareholder support.
The move comes after Deutsche Wohnen itself became a takeover target of bigger rival Vonovia. Some investors had urged management to pull the plans to buy LEG and instead accept the Vonovia takeover offer.
The planned shareholder meeting on Oct. 28, which the property group had called to get approval for the planned financing of its LEG offer, has also been cancelled.
“Management board and supervisory board came to the conclusion that the 75-percent majority required for the capital increase to be resolved at the extraordinary general meeting will not be reached,” Deutsche Wohnen said late on Wednesday.
“The planned merger with LEG on the basis of the Business Combination Agreement signed on 20 September 2015 will therefore not be pursued further.”
Full content: Market Watch
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