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Oct. 17 (Bloomberg) -- DTZ Holdings Plc fell the most since December 2008 in London trading after its biggest shareholder ended talks about a possible offer for the unprofitable U.K. real estate broker.
DTZ fell 16 percent to 23 pence, reducing the company’s market value to 62 million euros ($98 million). France’s Mathy family-owned Saint George Participations SAS won’t proceed with a bid for the shares it doesn’t already own, according to a statement today. SGP is backed by the property brokerage arm of Paris-based bank BNP Paribas SA.
“The external environment has contrived to prevent the considerable efforts of many people over the past months to consummate a transaction,” DTZ Chairman Tim Melville-Ross said in a separate statement. William Bain, associate director at Hawkpoint, SGP’s financial adviser, declined to comment.
SGP owns 54 percent of DTZ, which is cutting staff costs and other expenses after reporting losses for the past four years. The company announced today that SGP and Royal Bank of Scotland Plc provided a loan facility of as much as 10 million pounds, replacing a mezzanine facility.
“By the change in senior management we were able to being to take out some heavy cost at the center of the business,” DTZ Chief Executive Officer John Forrester said today in a telephone interview.
DTZ set an Oct. 17 deadline for a formal offer last month. The London-based company’s shares have dropped 48 percent this year.
--Editors: Andrew Blackman, Ross Larsen.
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