Green Property has confirmed it is in talks with at least three potential bidders. It now seems that Green chief executive Mr Stephen Vernon -backed by American private equity fund Westbrook Partners - is competing with Treasury Holdings and a grouping headed by Deutsche Bank real estate private group for control of the property group.
At its current share price of €9.15, Green is valued at €948 million although market sources believe any successful bid may need to be pitched at a minimum of €9.80 to get the support of Green's institutional shareholders.
None of the parties has commented on its approach to the Green board and the company itself has refused to make any comment over and above the bland announcements to the Irish Stock Exchange. But market sources believe Mr Vernon and his backers may have indicated that they would offer €9.20 a share, although the Vernon grouping has not yet made any formal offer.
Industry sources believe Mr Vernon has become increasingly frustrated in recent months at Green's treatment in the market and its discount against other property companies. He was not available to comment on reports that he had told the Green board that he might resign if his offer failed.
Mr Vernon was involved in an abortive management buyout of Green 18 months ago but withdrew after he and the other directors decided they would be unable to put together an offer that could get the support of Green's independent directors. Treasury and Deutsche Bank combined to make an approach but dropped out without making any formal offer.
The same market sources believe Mr Vernon's reported offer is probably low enough to revive the interest of both Treasury and Deutsche, although they are now involved in separate approaches. There are no indications yet who Deutsche's partners are in the latest approach, but it is thought likely that it will try to bring in another well-heeled property group, probably from Britain.
While Green's net asset value is €11.62 a share, analysts believe that a more realistic valuation is the estimated break-up value of €9.82 a share.
