Failed takeover bid

A major Australian retirement village developer has rejected an unsolicited offer from Lend Lease.

Retirement village developer and operator FKP has rejected a takeover bid from international property group, Lend Lease.

FKP has issued a statement saying the unsolicited proposal of five dollars per FKP security, significantly undervalued the company.

“FKP is the market leader in the Australian retirement sector, and is also positioned to benefit from significant growth in its development, land and funds management divisions,” said FKP Chairman Ben Macdonald.

“The [Lend Lease] proposal is opportunistic and does not reflect FKP’s underlying value and future prospects.

“FKP is in a strong financial position and is set to deliver strong earnings growth from [2008-09] onwards.”

Lend Lease has expressed its disappointment at the decision from FKP’s board, saying it remained open to ongoing discussions with the takeover target.

Macquarie Capital Advisers and Minter Ellison are advising FKP on takeover matters.

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