Colonial still studying Dubai takeover bid

Spanish property firm Colonial said on Friday it was still studying a takeover offer worth over 3 billion euros ($4.5 billion; Dh16.52 billion) from sovereign wealth fund Investment Corporation of Dubai (ICD).

The two main shareholders of Colonial, Luis Portillo and Luis Nozaleda, chairman of the Nozar group, held long talks with ICD on Thursday, Spanish papers reported on Friday, with the stakeholders trying to get a better price.

Colonial said on Friday it had not made a decision and gave no time frame in which it would make one.

The shareholders have asked ICD to make changes to the complicated bid, the Spanish property company said on Thursday. Colonial shares plunged on Thursday on doubts the bond-and-cash deal will come to fruition and fading prospects of a counterbid considering Colonial's complexity.

The stock closed down 14 per cent at 1.35 euros. In early Friday trade, the shares continued their descent, down 1.5 per cent at 1.33 euros by 0804 GMT.

ICD's offer is conditional on the sovereign wealth fund reaching agreement with banks that have lent money both to the company and to its shareholders.

Colonial has attracted various potential bidders since its share price slumped in December as shareholders unwound derivative positions on its stock, which was already falling on worries about a sudden slowdown in the Spanish property sector.