Norwegian real estate firm Entra has turned down a proposed takeover by Sweden’s Castellum, the two companies said on Wednesday, sending Entra’s shares down 3.4%.
It was the second time in two days that Oslo-listed Entra rejected a Swedish suitor following its decision on Tuesday to spurn a 30 billion Norwegian crowns ($3.4 billion) bid from real estate firm SBB.
Entra’s board said it appreciated the interest in the firm, but has decided to continue on its own, even as SBB is still expected to move forward with its bid.
“The board believes that Entra has a bright future as an independent company,” it said in a statement.
Castellum said it had proposed a bid that was higher than the 165 Norwegian crowns per share offered by SBB on Wednesday, but did not elaborate.
“Despite reaching an advanced stage, the discussions have not resulted in an agreement for the transaction and are therefore considered terminated,” Castellum said.
Unlike Castellum, SBB is still expected to move forward with its unsolicited offer to Entra’s owners, with a bid consisting of a mix of cash and stock.
Entra’s shares traded 3.5% lower at 0945 GMT at 166 Norwegian crowns, slightly above SBB’s bid, while Castellum’s shares rose by 1.1%.
Entra’s assets include the 26-storey Posthuset office block in Oslo, the Norwegian capital’s second-tallest building.
SBB on Tuesday said its proposed takeover would create the largest listed real estate company in northern Europe and give increased stock market liquidity and access to capital.
SBB’s shares fell by 0.2%.
Citigroup, Goldman Sachs and Arctic Securities were advising SBB, while Entra contracted ABG Sundal Collier to work on its behalf.