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Brixton shares dive after Segro takeover bid
22.06.09
Shares in struggling property group Brixton today plunged by a third, falling 21p to 41½p after rival Segro launched an unexpectedly low all-share takeover bid.
The two boards have agreed terms for the bid, which values Brixton at just £107 million or 39.4p a share based on Segro's closing price of 62½p on Friday.
The deal is still dependent on Segro going through Brixton's books and a final recommendation from the Brixton board.
Segro also said that if the bid goes ahead, it will raise a further £250 million from its own shareholders.
It raised £500 million from them in March through a rights issue but adding on Brixton would raise its debt levels sharply.
Louise Patten, chairman of Brixton, faces a tense shareholder meeting in London's May Fair Hotel this afternoon with bondholders challenging the takeover.
