Dexus, CPA resolve dispute

Groups avoid court by disclosing more information about increasing stake.

Dexus Property Group (DXS) has released more information about its holding in takeover target Commonwealth Property Office Fund (CPA) to a end a court battle with the group.  

In a statement to the Australian Securities Exchange, Dexus said it had entered into a forward contract with Deutsche Bank, giving it the ability to buy 350 million CPA units at $1.1334 apiece and the bank the obligation to deliver them. 

The deal gave Dexus the right to increase its 9.3% interest in the fund to 14.9%. 

In the dispute, CPA alleged Dexus had not followed corporations law by not disclosing enough information about the derivative product it entered into with Deutsche. 

Dexus has now released information about the product, known as a collar, which has a ceiling price of $1.20 and a floor price of $1.02, with a settlement date of July 25 2014.

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