Dexus Property Group (DXS) says it will use its existing interest in takeover target the Commonwealth Property Office Fund (CPA) to block a rival bid from GPT Group (GPT).
In a statement to the Australian Stock Exchange, Dexus noted its 14.9% interest in CPA under a forward contract with Deutsche Bank.
Dexus, in consortium with the Canada Pension Plan Investment Board, said it does not intend to accept the GPT bid, meaning the group will not be able to proceed to compulsory acquisition.
Dexus reserves its rights to change its intention if new information about the GPT bid is released, or the terms of the bid change.
CPA's responsible entity, Commonwealth Managed Investments Ltd, earlier backed a sweetened takeover bid from Dexus and the Canadian pension fund, valuing the target's stock at $2.42 billion.
GPT this week made a surprise $3 billion bid, after Dexus had gone into due diligence.