|
Jelmoli says will not renegotiate real estate deal
Real estate news By Reuters
Fri Sep 21, 2007 5:04am EDT
Switzerland's Jelmoli has turned down a request by the buyers of its real estate portfolio to renegotiate the deal given credit market turmoil, saying it would stick to the sale price. "Jelmoli will not consider any renegotiation of the agreed terms," the former retailer said on Friday.
The buyer's consortium led by Israel's Delek Real Estate (DLKR.TA: Quote, Profile, Research) had approached Jelmoli to renegotiate the 3.4 billion Swiss francs ($2.91 billion) price tag, citing current conditions in credit markets, Jelmoli said. The consortium was not immediately available for comment.
By 0746 GMT, Jelmoli stock had fallen 2.34 percent to 3,300 francs, below the slightly stronger Swiss mid cap index (.SMIM: Quote, Profile, Research). "It is hard to say whether there are some underlying problems with one of the partners in the consortium as a result of the sub-prime fallout or whether it is attempting to take advantage of soft market conditions to get a lower price," said Landsbanki Kepler analyst Jon Cox.
Send tips or a Letter to the Editor to editor@updatere.com
|
