Intu shares dropped 6.4 per cent in the morning
Just months after Hammerson made an all-share offer for rival Intu, the shopping centre giant has today withdrawn its £3.4bn takeover bid amid growing shareholder concerns regarding the health of the UK retail market.
Following this development, Intu shares fell by 6.4 per cent in the morning trading.
The withdrawal of the recommendation alone will not cause a lapse of Hammerson’s offer or terminate a co-operation agreement between the two companies, Hammerson added.
David Atkins, Hammerson’s chief executive, said: “It is clear that the heightened risks to the Intu acquisition now outweigh the longer-term benefits.”
However, Intu has attacked this rationale of Hammerson as “unsatisfactory”. Under UK takeover rules, it is now barred from making another approach for six months.