Lehman in $630m Tornet bid

Lehman Brothers Real Estate Partners and the investment group Ratos yesterday launched a SKr4.9bn ($630m) cash bid for Tornet, the listed Swedish property company, in what is potentially the country´s largest ever property deal. The offer gives Tornet an enterprise value of around SKr18bn, reflecting its extensive ownership of properties in Stockholm and the country´s other main cities.

Although the offer has been recommended by Tornet´s board and has the backing of 55 per cent of shareholders, some investors yesterday believed the bid would have to be increased to gain approval.

Analysts pointed out that Tornet itself had said its break-up value was SKr218 a share. Tornet´s share closed up 10 per cent at SKr195.50 in Stockholm, above the offer price of SKr190.

Henric From, head of Nordic capital markets at Jones Lang Lasalle in Stockholm, said the Swedish property market was attractive for foreign investors due to the relatively strong economic fundamentals in the country and the comparatively high property yields.

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