Paul Singer:
If he interferes, it usually gets a bit tricky for companies and board members
Photo: STEVE MARCUS / REUTERS
The bustling billionaire
Paul Singer
(76) is now also involved in the planned takeover of Deutsche Wohnen by Vonovia with his hedge fund Elliott.
According to a voting rights notification on Thursday shortly before the close of Xetra trading, Singer controls a good three percent of the shares in Deutsche Wohnen.
Singer is known to buy into companies that are about to be acquired and then ask a higher price.
The Deutsche Wohnen shares went out of Xetra trading on Thursday at EUR 51.54 and rose moderately by half a percent on Friday morning.
Vonovia shares initially climbed around 0.8 percent on Friday compared to the Xetra close.
Photo: STEVE MARCUS / REUTERS
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The two German real estate groups announced their planned merger at the end of May.
Vonovia wants to take around 18 billion euros in hand for this, or 53.03 euros per Deutsche Wohnen share, which includes the dividend of 1.03 euros.
This corresponds to a premium of 25 percent on the volume-weighted three-month average price.
It is quite possible that Elliott wants to get even more out of this.
The offer is subject to a minimum acceptance rate of 50 percent of all outstanding Deutsche Wohnen shares, the granting of merger control approval "and other customary conditions," it said at the end of May.
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Vonovia plans to issue new shares for up to eight billion euros to finance the takeover.
These are to be issued in the second half of the year after the transaction is completed.
The merger should reduce the annual costs by 105 million euros.
The savings target is to be achieved by the end of 2024.
rei / dpa-afx