27/09/2005 AM deal announcement expected next month, split up of business an option
Proprietary Intelligence
Story: AM NV, the Dutch property group, has instructed Clifford Chance as its legal adviser, as the company looks to issue a formal merger announcement in October, according to a source close to the deal.
In July this year the real estate company said it had received a takeover offer at EUR 9.50 a share and was in talks with other potential buyers.
The source said: “AM has been reviewing its options, which include splitting the transaction between residential and retail divisions. News of an announcement looks likely to happen in October, November at the latest, and the deal should close by Christmas or early next year.”
Nobody at AM was available to comment on the situation.
“There has been a bit of a delay because the solutions on the table were complicated,” added the source.
Local analysts are in agreement that AM is looking at EUR 10 and above per share price, with one analyst indicating that target sources are hoping for EUR 12.
AM earlier this summer said talks with Fortis Bank of Belgium had ended without any agreement - analysts are of the opinion Morgan Stanley is a likely bidder for AM’s international retail division, with Dutch financial group Rabobank as “realistic” buyer for the domestic residential business.
One analyst said: “The domestic residential business is likely to be bought by a Dutch trade competitor or financial institution, an international bidder is likely for the retail business.”
Clifford Chance is providing legal counsel for AM - a long-standing client - alongside financial advisor Kempen & Co.
Leading Dutch law firms De Brauw Blackstone Westboek and Stibbe and magic circle firm Allen & Overy’s local practice are understood to be acting on behalf of the mystery bidder(s) and the underwriters.
by Sarah Gill
Source: mergermarket
Value: €896m (market cap: AM)