Real estate group Vonovia still eager to strike a deal with Deutsche Wohnen Reuters

Authors: Alexander Hübner and Arno Schuetze

Frankfurt (Reuters)-A person familiar with the matter told Reuters that German real estate company Vonovia is expected to try again to acquire rival Deutsche Wohnen (OTC:) within a few weeks after initially failing to obtain shareholder support.

Vonovia said on Monday that shareholders bid for 47.62% of Deutsche Wohnen’s shares, which did not meet the required 50% threshold by the deadline last Wednesday.

One of the sources said: “The CEOs of the two companies still want to conclude a deal, and they are looking for a solution.” He added that the most likely option is to make a new offer.

Another person said that only after Vonovia’s board of supervisors analyzed the matter and signed a new acquisition attempt, would any new offer be made.

Vonovia and Deutsche Wohnen both declined to comment.

If the target company agrees and the German financial regulator Bafin issues an exemption, according to German law, potential buyers can immediately adopt a new method after the bid fails without waiting for 12 months. This exemption is considered mere formality.

The deal will create a $22 billion real estate giant with 550,000 apartments, but the deal has been at the center of heated debate in Germany due to the tense situation of soaring rents before the September election.

Vonovia failed in an acquisition attempt in 2016, but the CEO of Deutsche Wohnen supported the deal.

Some hedge funds insist that their stocks will earn more at a later stage.

In addition, index funds holding approximately 20% of Deutsche Wohnen’s shares can only bid for their shares after reaching the minimum acceptance limit.