British Land shares soar on growing bid fever

Published 14th Aug 2009

Shares in British Land continued to rise today, putting pressure on the FTSE 100 property company to clarify its position amid reports that it could face a bid worth up to £10 billion.

A consortium including the Mittal steelmaking family and Abu Dhabi's ruling family is said to have approached Credit Suisse about the possibility of hatching a move on the owner of Broadgate Circle, in the City.

British Land, which in February bolstered its balance sheet with a £740 million rights issue, declined to comment this morning, and the mooted members of the consortium could not be reached.

Shares in the FTSE 100 company rose by 25p, or 5.25 per cent, to 519.92p amid whispers of bid interest. Sovereign wealth funds and the state-owned China Investment Corporation were both cited as possible suitors.

The shares have rallied more than 65 per cent since March and stand at a premium to the group's last stated net asset value of 398p a share. However, property values have recently started to tick up and analysts said that the current share price was closer to British Land's realistic value.

A bid for the company could spark a revaluation of the battered property sector and help to call the end of the downturn.

British Land, which is to report first-quarter results next week, already has the Government of Singapore Investment Corporation as its largest shareholder, with a 4.9 per cent stake.

However, traders do not believe that the Singapore Government it is looking to increase its holding, given that it recently reduced its stake.

Reports last night claimed that the Mittal consortium had initially been interested in buying Broadgate Circle, which is valued at £2.3 billion.

Source: ' times '

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