CPA bids 'not over'
Analysts tipped that Dexus, which has three working days to respond to GPT's counter-offer, would likely match GPT's offer by including a higher cash component of 73¢, versus GPT's 72¢ a share.
Given both the deals are a combination of scrip and cash, investors in CPA were being forced to pick which company was the best manager for the office assets.
Fund managers said the share price movements of Dexus and GPT over the coming days would give an indication as to which offer professional investors were preferring.
GPT on Wednesday closed down 6¢ to $3.56, Dexus dropped 0.05¢ to $1.06 and CPA settled at $1.26.
Under the GPT deal, the offer price is equal to $1.24, excluding CPA's 2014 half-year distribution, compared with the Dexus offer which values CPA at $1.21.
Frequently Asked Questions about this Article…
The CPA is currently in the midst of a bidding war between Dexus Property and the Canada Pension Plan Investment Board, following a surprise $4 billion offer from rival GPT.
Analysts expect Dexus to respond to GPT's counter-offer by matching it, potentially including a higher cash component of 73¢ per share compared to GPT's 72¢.
Both offers from Dexus and GPT are a combination of scrip and cash, requiring investors to decide which company would be the best manager for the office assets.
Investors can look at the share price movements of Dexus and GPT over the coming days to get an indication of which offer professional investors are favoring.
Recently, GPT closed down 6¢ to $3.56, Dexus dropped 0.05¢ to $1.06, and CPA settled at $1.26.
GPT's offer values CPA at $1.24, excluding CPA's 2014 half-year distribution.
Dexus's offer values CPA at $1.21, which is slightly lower than GPT's offer of $1.24.
CPA investors should consider which company, Dexus or GPT, would be the best manager for the office assets, as well as the cash component and overall valuation of each offer.
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