Intu puts up no fight as Hammerson backs away from merger

A proposed £3.4bn all-share merger between two shopping centre groups was called off after Intu Properties let Hammerson off the hook. Intu, best known for owning the Trafford Centre in Manchester, said that it had accepted the merger could no longer go ahead. Hammerson withdrew its recommendation to support the deal last week, saying that it was no longer certain that it was in its shareholders’ interests. Under the City’s Takeover Panel rules, Intu could have insisted that a meeting to vote on the merger go ahead, but instead it said that it had released Hammerson from its obligation to proceed with the merger at its annual meeting yesterday. In a statement, it said: “In light of the Hammerson board’s decision to change its recommendation and to advise its own shareholders to vote against the Intu transaction, Intu believes that there is now no realistic prospect that this condition will be satisfied.” Click here for the full Times article (£) Click here for the full EG article