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GPT Group’s (ASX:GPT) takeover target Commonwealth Property Office Fund (ASX:CPA) has rejected its $4 billion cash and scrip offer in favour of a rival bid.
Commonwealth Managed Investments Limited's (CMIL) independent directors, acting on behalf of the property group, unanimously recommended shareholders reject the GPT bid in a statement lodged after the market closed on Christmas Eve.
Commonwealth Property Office Fund has instead sided with a sweetened bid from DEXUS Property Group (ASX:DXS) and Canada Pension Plan Investment Board valued at $1.27 per unit.
Commonwealth Managed Investments Chairman Richard Haddock has flagged another Target's Statement in due course recommending shareholders accept the Dexus offer in the absence of a superior proposal.
As the battle for Commonwealth Property Office Fund continues media reports have speculated GPT Group could be preparing to raise its bid to equal Dexus this week.
Shares in GPT Group fell 1.44 per cent to close at $3.43, before the announcement was made on Christmas Eve.
GPT Group reported a net profit of $257 million in the first half of the 2013 calendar year.
