Business | Construction

Limitless could face competition in Minerva deal

There is speculation in the British market that another bidder has stepped forward to buy the property developer.

  • By Suzanne Fenton, Staff Reporter
  • Published: 00:03 July 24, 2008
  • Gulf News

Dubai: Property developer Limitless, which is owned by the Dubai Government, could face competition in the middle of intense negotiations to buy British developer Minerva for an estimated Dh1.9 billion (£260 million).

A spokesperson for Minerva said there had been "some speculation" in the UK market that another bidder had stepped forward. But since the company has not officially announced this, it is thought to be speculation.

Minerva shares rose 80 per cent to £1.20 by the end of Monday following the announcement that Limitless had put in a cash bid of £1.60 per share.

The spokesperson attributed this jump to the fact that "the proposal is at a significant premium to the share price".

However, the spokesperson told Gulf News yesterday that shares in Minerva had increased further, reaching £1.29 per share. He said at this stage due diligence was being carried out, adding that a deal could be reached in about three weeks.

Minerva is though to be struggling in an increasingly deflated UK property market.

If an agreement is reached, Gulf investors would have a strategic toehold in the world's most expensive real estate market.

Rebecca Rees, a media relations manager at Limitless, said: "Minerva issued a statement on Monday. We confirm the contents of that statement, but have no further comment at this time."

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