The Aermont Capital-led group of activist investors opposed to Unibail-Rodamco-Westfield’s proposed EUR 3.5bn rights issue would not settle for a smaller issuance, according to a source close to the situation.
URW, a developer and operator of commercial real estate, announced on 17 September that it intends to issue EUR 3.5bn in new shares, cut dividends and sell assets as part of a EUR 9bn “reset” plan.
Yesterday (15 October) a consortium led by Aermont and fellow shareholder NJJ, which hold a combined 4.1% stake, came out against the plan and proposed three new candidates for the company’s board.
Not only is the consortium against the EUR 3.5bn rights issue, the source said, but it is unlikely to accept a more modest rights issue, as even that would be highly dilutive to existing shareholders.
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by Deane McRobie in London