Investors in the Commonwealth Property Office Fund (CPA) are expecting a revised offer from suitors Dexus Property and Canada Pension Plan Investment Board, in what has become a bidding war following the surprise $4 billion offer from rival GPT.
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.