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(Alliance News) - Bank of Cyprus Holdings PLC shares fell on Tuesday, as LSF XI Investments LLC confirmed that it does not plan to make a takeover offer for the Strovolos, Cyprus-headquartered financial services firm.
Bank of Cyprus shares were trading 9.3% lower at 112.00 pence each in London on Tuesday afternoon.
LSF XI Investments, which is part of US private equity firm Lone Star Funds, confirmed that it does not intend to make an offer for Bank of Cyprus, following the rejection of its third proposal on July 22.
Responding to the statement, Bank of Cyprus said it has received and rejected "three unsolicited, conditional, non-binding proposals" from Lone Star, and it has not receive any further offers since its third proposal in July.
Lone Star's first proposal was made in early May, at a price of EUR1.25 per share. Following that offer's rejection, Lone Star made a second proposal in late May, increasing the price to EUR1.38 per share.
The third and final proposal raised the price even further to EUR1.51 per share.
Bank of Cyprus rejected all of the proposals, and said they "fundamentally undervalued the company and its future prospects".
Lone Star had until September 30 to announce a firm intention to make an offer, or withdraw from the takeover process.
Bank of Cyprus added that it remains confident of the its future prospects, and of its ability to deliver its strategy "of becoming a sustainably profitable institution capable of further supporting the Cypriot economy."
It also reiterated its upgraded guidance which it have back in August. This includes delivery of a return on tangible equity of greater than 10% in 2023 and a return to "meaningful" dividend distributions from 2023 onwards.
By Holly Beveridge; hollybeveridge@alliancenews.com
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