April 18 (Reuters) - Hammerson Plc has withdrawn its recommendation to shareholders that they back a merger with Intu Properties Plc, the British property company said on Wednesday.
The withdrawal of the recommendation alone will not cause a lapse of Hammerson’s offer or terminate a co-operation agreement between the two companies, Hammerson said.
Hammerson said it concluded that the “heightened risks associated with the Intu acquisition outweigh the long-term rewards that can be expected in comparison to other strategic options open to the company”.
French shopping centre operator Klepierre abandoned a 5 billion pound ($7.15 billion) bid for Hammerson last week, accusing the British company of failing to provide “meaningful engagement” over a potential deal.
$1 = 0.6990 pounds Reporting by Arathy S Nair in Bengaluru; editing by Jason Neely