Bloomberg News

Fonciere Paris France’s Largest Shareholder Raises Offer

November 27, 2011

(Updates with FPF’s response to the revised offer in third paragraph.)

Nov. 25 (Bloomberg) -- Fonciere Paris France SA’s largest shareholder, Cofitem-Cofimur SA, raised its bid for the office landlord by 10 percent after the first offer was rejected last month. Fonciere Paris France gained as much as 7.1 percent.

Cofitem-Cofimur, backed by insurers Allianz SE and Covea SGAM, increased its bid to 110 euros ($146) a share from 100 euros, a statement published in Les Echos newspaper showed. Fonciere Paris France, known as FPF, last week offered to raise its dividend and buy back a quarter of its shares for 117 euros each in response to the original bid from Cofitem-Cofimur. The revised offer values the company at about 191 million euros.

The bid “still largely undervalues the intrinsic value of the company,” FPF said in a statement today. FPF described Cofitem-Cofimur’s initial offer as opportunistic on Oct. 12.

An offer by Fonciere des Regions SA that valued Paris-based FPF at about 440 million euros, excluding debt, collapsed in September as a slide in stock markets distorted the terms of its share offer. Fonciere Paris France’s board and senior executives had supported that bid.

French rules prohibit an investor or partners from owning more than 60 percent of a real estate investment trust, which pays no corporation and capital gains tax in return for distributing most of its net rental income to investors.

FPF was up 7.2 euros at 108.75 euros at 3:11 p.m. in Paris, giving the company a market value of 189 million euros.

--With reporting by Simon Packard in London. Editor: Frank Connelly, Ross Larsen.

To contact the reporters on this story: Andrew Blackman in Berlin at; David Whitehouse in Paris at

To contact the editor responsible for this story: Andrew Blackman at

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