DTZ this morning said that talks on a takeover of the company by its main shareholder and BNP Paribas had been terminated.
As revealed by Property Week last Friday, no offer was forthcoming because the downturn in global financial markets has moved against the three parties, all of whom were keen to complete a deal.
DTZ said its board would now look at its strategic options – but without the input of the board members from majority shareholder Saint Georges Participations.
It also said it had agreed a new revolving credit facility of £10m from SGP and Royal Bank of Scotland, its main bank, which replaces a similar mezzanine credit facility from SGP.
In May DTZ revealed it had received preliminary approaches from parties about interest in investing in its shares, including a possible offer for the company.
It was revealed that SGP, which owns 55% of the company, had made a preliminary approach, which would have seen it take DTZ private and straight away sell it to BNP Paribas, and DTZ merged with BNP Paribas Real Estate.
A price of 60p for the deal was mooted, but as the Eurozone debt crisis unfolded, European banks became net sellers rather than buyers of assets, and interest from BNP Paribas cooled.
Shares dropped from a high of 55p earlier this year to close at 27p on Friday, the lowest level since November 2009 when the company was organising a rescue capital raising.
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