Westfield Trust has offered US$940 million in cash (US$1.184 per share) for AMP's nine regional malls. Centro Properties Group in March offered US$855.5-million cash and scrip (approx. US$1.08 per share) bid by Australia-based Centro Properties Group.
Both Westfield and Centro hold 19.9% stakes in AMP Shopping Centre Trust. The trust's manager, AMP Henderson Global Investors, welcomed the higher offer but gave no timeline for a decision.
In response to Westfield's offer, Centro's CEO Andrew Scott said the company "will consider carefully all of our options in relation to the proposed bid and Centros own offer to ART unitholders."
Westfield says its bid--at the upper end of the value range as determined by a third party--is justified because its per share distributions would increase to 3.75% for 2003, assuming the transaction is completed by July 1, and would be 3.75% again in 2004 off the higher base.
If Westfield's bid is approved and the acquisition moves forward, Westfield says it will sell three properties representing $500 million from the combined portfolio in order to meet regulatory requirements for the deal. That would leave Westfield with interest in 48 shopping centers in Australia and New Zealand with a total value of $11.5 billion.
ART shares rose about 3% to A$1.80 on Tuesday to match Westfield's offer. Centro rose about 1.3% to A$3.90. Shares of Westfield Trust and Westfield Holdings were unchanged at A$3.55 and $14.78, respectively.
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