Dinu Patriciu launches takeover bid for Rutley European Property

Businessman Dinu Patriciu has also acquired a 29.9% stake in Deutsche Land for 11.4 million pounds.

According to a press release, Deutsch Land has agreed to issue a further 167,493,489 shares to BSGP at 12p per share, thereby increasing BSGP's holding in the company to approximately 54.1%.

According to Deutsche Land, the proceeds of the placing will be used to fund the company's existing capital expenditure program, to provide working capital and to strengthen the financial position of the Company and its group. Deutsche Land reported losses of 82.5 million euros for 2008 and of 15 million euros for 2007.

The takeover bid for Rutley European Property evaluates the entire capital at 12.5 million pounds and the market value of the fund at 446 million pounds.

The bid is 107% above the March 27 2009 closing quotation of 2.9pence/share.

“The offer is made for the entire Rutley capital, issued or under way to be issued, that is not owned or already contracted for acquisition by BSGP”, reads a press release remitted by BSGP.

The financial consultant of BSGP is the investment bank Lazard, headed by the veteran Bruce Wasserstein. Black Sea Global Properties is indirect wholly owned unit of Rompetrol Holding and offers 6 pence a Rutley share.

“We are launching this offer at a time of ongoing uncertainty in European real estate markets. Our offer is designed to accommodate those shareholders who are seeking a cash exit as well as those who wish to remain invested. Assuming we achieve control of Rutley via the offer, we intend to stabilize the company's financial position and take other measures to improve the company's performance,” said Dinu Patriciu in a press release remitted to Wall-Street.