The Dubai group broke the news via a filing with the Spanish stock market regulator.
Apparently the investment group, owned by the Dubai government, was unable to reach an agreement with the property group’s leading shareholders. According to media reports
ICD was offering €2.98bn (US$4.53bn) for Colonial in a combination of cash and bonds. At that price the leading shareholders would have been left with a significant loss.
At the Monday Mar 3 close, the shares were €1.23 each, representing a near 75% fall on what they were trading at a year ago.
However, Colonial managed to post a fivefold net profit increase in 2007 of €85.4m, thanks to acquisitions, which left it heavily in debt. As of December 31, Colonial’s debt was €8.96bn, representing 67.2% of the value of its assets. According to Colonial its net asset value per share is €2.35.