Foncière Paris France (FPF) is countering a takeover bid by Paris Hotels Roissy Vaugirard (PHRV) with a EUR 117 per share buyback programme.

In a statement on Wednesday, the Paris-listed office landlord said the offer received by PHRV, which is controlled by Allianz and Covea, 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 offered to raise its 2011 dividend by 9% to EUR 6.25 per share and said it will buy back a quarter of its shares for a price of EUR 117 each, representing a premium of 17% on PHRV's EUR 100 per share offer. Following this transaction, the company's financial position will remain sound, with a conservative loan-to-value ratio of less than 40%.

Shares in FPF rose 7.4% to EUR 109.50 following the announcement.

FPF already rejected the PHRV bid in October saying 'it did not present any advantages' for the business.

PHRV, which is being advised by Natixis, is controlled by Allianz (31.4 %), Covéa (31.4 %) and FPF shareholder Cofitem-Cofimur (31.1 %).

The move comes a month 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.