CD is still being discussed with Colonial
Corporation of Dubai (DCI) is still in discussion with Colonial although the funds ruler of Dubai has indicated that its offer on the Spanish real estate group debt had expired, said sources close to the case.
DCI said in a press release that the shareholders of Colonial and himself were not able to reach an agreement within the deadline he had set, namely before the deadline on Monday.
An agreement between the shareholders, creditors and sovereign fund with $ 82 billion is not completely ruled out, according to two sources, and negotiations are continuing.
"Discussions continue as creditors want to avoid placing under judicial supervision (Colonial), which appears to be the only outcome if the negotiations for a deal fail," said a banker who requested anonymity.
The authority of financial markets Spanish CNMV suspended share listing Colonial and asked protagonists - ICD and the two principal shareholders of Colonial Luis Portillo and Nozar group - to clarify their position and to clarify whether they intend to reach agreement.
The CNMV has asked them to issue a press release as soon as possible.
In his previous release, DCI not explained why discussions on its bid three billion euros in cash and securities were at an impasse.
DCI called a discount, or better conditions on a syndicated loan of 4.66 billion euros contracted by Colonial and the divestiture of the housing, which could change the conditions of the offer.
Nozar, Colonial and DCI have declined to comment while Portillo has been unable to be reached in the immediate future.
The share price of Colonial has plunged by nearly 14% accentuating a decline of 28% since the announcement of the offer of DCI Wednesday. The title has erased some of its losses following the announcement by Reuters of the continuation of negotiations, trading at 1.16 euros before the suspension, or a decrease of 5.7%.
Former President Luis Portillo and the family Nozaleda, which together hold 52% stake in Colonial, have conducted extensive discussions with DCI on the prices and terms of the transaction, after having initially agreed to sell their shares to Gulf funds.
The success of the bid was conditional on an agreement with creditors Colonial: Royal Bank of Scotland, Eurohypo, Calyon, a subsidiary of Credit Agricole, and Goldman Sachs.
The failure of this acquisition presents the creditor banks to impairment of assets, less than resume themselves part of the assets of Colonial, which has already failed to meet some of its commitments, or to renegotiate these claims, option considered highly unlikely by bankers in the current crisis of credit.
The market doubted the success of the offer of DCI on Colonial, what reflected the decline in the Spanish title of the proposal since the fund.
DCI is the only one to make an offer, to be paid in cash, at 1.85 euro per share, or by means of financial instruments issued by ICD, to 2.25 euros per title.
This offer should have been followed by a takeover bid for the subsidiary of Colonial Foncière Lyonnaise.
Colonial has become a prey since the collapse of its stock market price in December, after unbuckling of derivative positions on the title, which had already suffered from fears of a crisis on the Spanish property market.
Ben Harding, French Gilles Guillaume and Stanislas Dembinski
DCI said in a press release that the shareholders of Colonial and himself were not able to reach an agreement within the deadline he had set, namely before the deadline on Monday.
An agreement between the shareholders, creditors and sovereign fund with $ 82 billion is not completely ruled out, according to two sources, and negotiations are continuing.
"Discussions continue as creditors want to avoid placing under judicial supervision (Colonial), which appears to be the only outcome if the negotiations for a deal fail," said a banker who requested anonymity.
The authority of financial markets Spanish CNMV suspended share listing Colonial and asked protagonists - ICD and the two principal shareholders of Colonial Luis Portillo and Nozar group - to clarify their position and to clarify whether they intend to reach agreement.
The CNMV has asked them to issue a press release as soon as possible.
In his previous release, DCI not explained why discussions on its bid three billion euros in cash and securities were at an impasse.
DCI called a discount, or better conditions on a syndicated loan of 4.66 billion euros contracted by Colonial and the divestiture of the housing, which could change the conditions of the offer.
Nozar, Colonial and DCI have declined to comment while Portillo has been unable to be reached in the immediate future.
The share price of Colonial has plunged by nearly 14% accentuating a decline of 28% since the announcement of the offer of DCI Wednesday. The title has erased some of its losses following the announcement by Reuters of the continuation of negotiations, trading at 1.16 euros before the suspension, or a decrease of 5.7%.
Former President Luis Portillo and the family Nozaleda, which together hold 52% stake in Colonial, have conducted extensive discussions with DCI on the prices and terms of the transaction, after having initially agreed to sell their shares to Gulf funds.
The success of the bid was conditional on an agreement with creditors Colonial: Royal Bank of Scotland, Eurohypo, Calyon, a subsidiary of Credit Agricole, and Goldman Sachs.
The failure of this acquisition presents the creditor banks to impairment of assets, less than resume themselves part of the assets of Colonial, which has already failed to meet some of its commitments, or to renegotiate these claims, option considered highly unlikely by bankers in the current crisis of credit.
The market doubted the success of the offer of DCI on Colonial, what reflected the decline in the Spanish title of the proposal since the fund.
DCI is the only one to make an offer, to be paid in cash, at 1.85 euro per share, or by means of financial instruments issued by ICD, to 2.25 euros per title.
This offer should have been followed by a takeover bid for the subsidiary of Colonial Foncière Lyonnaise.
Colonial has become a prey since the collapse of its stock market price in December, after unbuckling of derivative positions on the title, which had already suffered from fears of a crisis on the Spanish property market.
Ben Harding, French Gilles Guillaume and Stanislas Dembinski
posted by news of france at
12:31 PM
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