Paris Hôtels Roissy Vaugirard, a vehicle controlled by insurers Allianz and Covéa together with property company Cofitem-Cofimur, has raised its stake in Foncière Paris France to 68%, thereby sealing its hostile takeover offer for the French listed office landlord.

Cofitem-Cofimur, which acts in concert with PHRV, holds a further 16% in the Paris-based real estate investment trust, bringing the total stake held by the consortium to nearly 84%. The takeover brings an end to a heated takeover battle for FPF, which started in October 2011.

An EUR 110 per share offer launched by PHRV on December 16 was rejected by FPF's management as 'an opportunistic financial transaction initiated in a depressed stock market environment'. The board formally recommended shareholders not to tender their shares, pointing to the offer's nearly 20% discount to FPF's EPRA Net Asset Value per share.

FPF owns a EUR 700 mln portfolio of high-quality assets in the greater Paris area.

To allow FPF to comply with the 60% maximum shareholding limit under the REIT regime, PHRV is expected to hand over part of its stake to Foncière des 6ème et 7ème arrondissements de Paris, Covéa and Associations Mutuelles Le Conservateur, which have committed a maximum of EUR 40 mln, EUR 95 mln and EUR 10 mln respectively.