DTZ, the property management consultancy that is currently trying to sell itself, has announced Australian firm UGL as its preferred bidder. The news has sent DTZ shares higher although the back story to the deal is not pretty for investors.
The value of DTZ all but evaporated on Monday after the firm admitted its huge debts would mean shareholders would receive virtually nothing from any sale.
As a result of that statement the stock fell 85% yesterday, down 92% on the year. Today's news of a possible tie up with UGL has obviously got some investors hoping to squeeze at least some value from their holdings.
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Whether they can or not is an open question as the transaction is by no means a done deal.
As a business proposition, though, the Aussie takeover makes some sense as it would create one of the biggest property servicing companies in the world employing 24,000 people, and operating in 45 countries.
UGL now has until the 6th of December to make a firm offer.
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