London-based activist investor Petrus Advisers Ltd. called on CA Immobilien Anlagen AG to not proceed with its planned merger with IMMOFINANZ AG.
In a Nov. 27 open letter to CA Immobilien Head of Supervisory Board Torsten Hollstein, the activist investor demanded all merger talks be terminated immediately, calling the proposed transaction "a waste of time and money," especially if there is no support from 75% of all shareholders.
Petrus suggested the companies focus instead on increasing the value of their shares, noting that a cash acquisition of CA Immobilien, instead of a merger, could boost the value of Immofinanz shares by about 40% over the current level.
The firms agreed to merge in April 2016, with the deal contingent on the sale of Immofinanz's Moscow shopping center portfolio.
Petrus claims to hold a more than 2% stake in CA Immobilien and under 4% in Immofinanz. Immofinanz, which owns 26% of shares of CA Immobilien, said the companies plan to resume merger talks soon, according to Reuters.