– No new situations
– Deutsche Wohnen AG (DWNI GY) / Vonovia SE (VNA GY): Vonovia using public press game and playing down expectations of Deutsche Wohnen bump: Vonovia said last month that it would make a €14bn bid for Deutsche Wohnen, Germany’s second largest listed landlord, if Deutsche Wohnen’s own €7.6bn bid for LEG, the third largest property group, was rejected by shareholders. The LEG deal duly collapsed, but Deutsche Wohnen’s management rejected Vonovia’s bid as “unattractive and inadequate”, and some Deutsche Wohnen shareholders have said they would like to receive a higher offer. Most probably that Vonovia wants to be successful in acquiring DWNI’s attractive profile as DWNI has grown to become the second-biggest player in the German residential industry, operating 142k units (€10bn portfolio value); and with most of its portfolio (75% by value) in Berlin, DWN looks set to enjoy the benefits of rising market prices in one of the cheapest global capitals. Predictable posturing language from Vonovia in anticipation of (small / cash) bump: either buy Deutsche Wohnen outright below EUR 25 or set up spread above EUR 1 (terms: 1 DWNI = 7.5582 cash + 0.6364 VNY).
– SabMiller plc (SAB LN) / AB Inbev (ABI BB) – The FT reports that Molson Coors is in advanced talks to buy SAB’s majority stake in their MillerCoors jv, although no agreement has been reached and a deal could still fall apart. It comes just before the November 4 deadline for AB InBev to make a formal offer for SAB. All pieces falling in place for recommended 2.7 announcement by Inbev for SAB – however SAB trades almost at perfection here above GBP 40, limited 1-1.5% upside possible if they firm up the deal in next day(s). Not to chase here, but to be patient and trade SAB on regulatory headlines in next 12 months.