DXS Dexus

   By Rebecca Thurlow 
 

SYDNEY--Australia's Takeovers Panel has been asked to intervene in a battle for Investa Office Fund (IOF.AU) as demand for commercial property in the country intensifies.

Australia's biggest office landlord Dexus Property Group (DXS.AU) has made a cash-and-shares bid valuing the trust at 2.6 billion Australian dollars (US$2 billion) and wants IOF's former manager Morgan Stanley to abstain from voting on its stake when shareholders meet to decide on the offer next month.

The deal would entrench Dexus's dominance of the listed office trust sector in Australia after it snapped up rival Commonwealth Property Office Fund in 2014 following a takeover fight with GPT Group. The offer already has the approval of the IOF board, but is being opposed by Investa Commercial Property Fund Group, which took over IOF's management from Morgan Stanley as part of a move by the U.S. investment bank to divest its Australian commercial property business Investa Property Group. ICPF is urging shareholders to reject the Dexus offer and instead buy half the management platform for A$45 million.

Dexus wants Morgan Stanley to abstain from voting its 8.9% stake in IOF when shareholders meet on April 8 to decide on the takeover bid, saying it would be unacceptable for the U.S. investment bank to vote because it is associated with ICPF.

The Takeovers Panel said Tuesday it has received the application from Dexus but no decision has yet been made as to whether to conduct proceedings.

-Write to Rebecca Thurlow at rebecca.thurlow@wsj.com

(END) Dow Jones Newswires

March 21, 2016 21:27 ET (01:27 GMT)

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