Mark Elwa
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Klepierre Offers to Buy Competitor Corio for $5.6 Billion

Klepierre offered to buy Dutch competitor Corio NV for about 4.2 billion euros ($5.6 billion) to solidify its position as Europe’s second-largest publicly traded-shopping mall operator as euro region economies recover.

Klepierre bid 1.14 of its stock for each Corio share, valuing Corio at 41.4 euros a share, the companies said in a statement today. That’s 15.5 percent more than Corio’s closing share price yesterday.

Investment in European retail properties rose by 86 percent in the second quarter from a year earlier as supermarkets and malls in cities including London and Paris benefit from urbanization, broker Jones Lang LaSalle Inc. said in a report yesterday. Recovering European economies have led to improved sales of clothing and other goods at malls, drawing more investors and pushing up values, according to the report.