Paris Hôtels Roissy Vaugirard (PHRV) has raised its takeover bid for Foncière Paris France, illustrating its resolve to take control of the Paris office landlord.

PHRV, which is owned by Allianz (31.4 %), Covéa (31.4 %) and FPF shareholder Cofitem-Cofimur (31.1 %), said late last week that it is increasing its offer by 10% to EUR 110 for all the shares, from EUR 100 previously, while also lifting its bid for FPF's equity warrants and convertible bonds.

'This offer targets the totality of the shares and securities giving access to the capital. Thus, it should not be directly compared to the partial repurchase public offer project announced by FPF. At this stage, the FPF project is only potential and limited to 25% of the sole shares,' the company said.

PHRV initially launched its EUR 100 cash offer on October 10. The bid was immediately rejected by FPF as hostile.

Last week, FPF announced an EUR 117 per share buyback programme to counter PHRV's takeover offer. The Paris-listed firm recommended shareholders not to accept the PHRV bid, saying it significantly undervalues the company and, if successful, would require the renegotiation of EUR 185 mln of debt amid difficult financial conditions.

'The board reaffirmed its view that the offer represents an opportunistic financial transaction initiated in a depressed stock market environment at a price that does not reflect the value that shareholders can legitimately expect to obtain,' the company said in a statement. FPF also offered to raise its 2011 dividend by 9% to EUR 6.25 per share.

The move comes two months after Fonciere des Regions said it was dropping its EUR 460 mln bid for FPF due to volatile market conditions. The operation - which collapsed after a slide in stock markets distorted the terms of the share offer - had the support of Fonciere Paris France's board and senior executives.