GPT has commenced a bidding war against Dexus Property Group after launching a surprise counterbid for CPA yesterday

GPT has commenced a bidding war against Dexus Property Group after launching a surprise counterbid for CPA yesterday. If successful, GPT will become the largest office property owner in the country with A$10billion assets under management. The surprise cash and scrip offer values CPA at $1.24 per unit, above the $1.21 per unit of the Dexus and Canadian Pension Fund bid. The GPT offer is at 7 per cent premium to CPA's net tangible asset backing but will effectively issue equity below its own asset backing, which prompted some criticism. Although GPT's pre-bid agreement is over a smaller 6.5% stake, it has the backing of London-based Mondrian Investment Partners who hold an 8% stake. The bid is also being touted as a faster and more efficient option Dexus's drawn out scheme of arrangement. (VIEW LINK)