VIENNA (Reuters) - U.S. investment firm Starwood Capital failed on Wednesday in its attempt to take major stakes in Austrian property groups CA Immo (CAIV.VI) and Immofinanz (IMFI.VI), as shareholders bet a more lucrative deal could be secured.
Starwood’s bid could have sped up a shift of powers in the region after residential property groups Conwert and Buwog were recently taken over by German market leader Vonovia (VNAn.DE).
CA Immo and Immofinanz, two out of three remaining listed Austrian property groups, had agreed in 2016 to merge and create a heavyweight but the plan fell through this year after pressure from an activist investor.
Shortly after that, Starwood offered to buy up to 26 percent in CA Immo and up to 5 percent in Immofinanz. But only 0.2 percent of each firm’s shareholders tendered their stakes by the end of the acceptance period on May 30, the companies said.
Starwood was ready to pay CA Immo shareholders 26.70 euros per share, and Immofinanz shareholders 2.03 euros per share.
CA Immo traded at 29.24 euros and Immofinanz at 2.08 euros at 1350 GMT on Wednesday, indicating investors hoped for more.
Analysts and the property groups have said consolidating the remaining groups would make sense as it would increase sales power and financial strength.
There were several parties looking to buy, a property banker familiar with the matter said in March.
CA Immo’s 4.3 billion euro portfolio comprises offices
