Deutsche Land’s shareholders are being urged to force the board into considering a bid from Prostar Germany, after the bidder’s offer of 8p a share was rebuffed this week.
Prostar Germany, run by Deutsche Land co-founder Jonathon Elkington, said it was ‘surprised and disappointed’ at Deutsche Land’s announcement two days ago that the bid of not less than 8p a share was ‘inadequate.’
Prostar said in a statement today that the bid offered a ‘generous premium’ of 42% on Deutsche’s share price yesterday of 5.6p.
It complained that Deutsche Land has not engaged with the company to release due diligence information to Prostar with a view to it making a possible offer.
A statement said:‘The board of Prostar firmly believes that Deutsche Land shareholders should be given the opportunity to make their own decision on the possible offer, rather than have that decision effectively taken from them by a board which, over an extended period, has consistently refused to engage with Prostar to progress a premium all cash possible offer for Deutsche Land, despite a declining share price.’
Prostar said Deutsche Land’s share price had declined by 54% from 9.5 on 25 November 2008, when Prostar initially approached Deutsche Land’s board, to 4.375p on 28 January 2009.
It said the offer, which is financially backed by Hanseatic Holdings, offered premium value and maximum security to Deutsche Land’s share holders.
It said it retained the right to reduce the value of its offer should an offer be recommended for approval by the board.