What Price Bicester Village?
A $7 Billion Bet That Says Experts Are Wrong About Malls
Hammerson's investors don't think it's worth as much as its net asset value, putting Klepierre in a strong position as a bidder.
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Who believes U.K. commercial property is worth what the experts say? Certainly not the shareholders. Their doubt has tempted Paris-based landlord Klepierre SA to have a go at buying Hammerson Plc, owner of some of Britain's top malls. Hammerson's defenses look weak.
In December, the British company agreed to buy fellow London-listed property group Intu Properties Plc. Its shares subsequently fell by about 20 percent before Klepierre -- chaired by property magnate David Simon -- made a bid approach on March 8. Hammerson said no, arguing that the overture was well below its net asset value as calculated by industry experts.