The board of Australand Property Group (ALZ) has rejected a takeover proposal from Stockland Group (SGP) that had a consideration of 1.111 Stockland shares for every Australand share.
The bid implied an offer price of $4.20 per Australand security but the target said the bid does not provide sufficient consideration to shareholders in the context of a change of control.
The offer is a 1.9% discount to Australand's closing price of $4.28 on April 22 and a 0.4% discount to the target's volume weighted average price since it announced an operational earnings upgrade on March 25.
ustraland said its board does not consider that the offer's terms are compelling and has decided not to provide Stockland with access to due diligence material.
At 10.56am (AEST) Australand shares were unchanged at $4.28, against a benchmark index lift of 0.56%.