Shareholders squash billion dollar property merger

FHH's chairman Robert Jeker failed to convince shareholders to approve the planned merger Keystone

Shareholders of Feldschlösschen-Hürlimann Holding (FHH) have voted overwhelmingly against a planned merger with Swiss Prime Site.

The deal would have created Switzerland’s biggest property group, but was rejected amid rumours of a higher counter-bid.

FHH is all that remains of the Feldschlösschen-Hürlimann brewing group. It now consists of only a property business since Denmark’s Carlsberg bought the company’s soft drink and beer activities last July.

FHH and fellow property concern Swiss Prime Site had announced plans in February to form a group with a portfolio of SFr1.8 billion ($1.03 billion) as the Swiss property sector continues to consolidate.

Of the FHH shareholders at the meeting, 788,290 voted against the proposed merger while 421,098 voted in favour.

The biggest FHH shareholders are billionaire trader Marc Rich and brewer Eichof Holding. Rich and other shareholders believed the merger plans had undervalued FHH shares.

Swiss property group Mobimo was unavailable for comment on newspaper reports that it was planning a bid for FHH.

swissinfo with agencies