By a staff reporter
GPT Group Ltd has pulled its fresh bid for Australand Property Group Ltd's commercial and industrial business, six months after its $3 billion takeover offer for its rival was rebuffed.
"Following the completion of detailed due diligence and discussions, it has become apparent that a transaction at a price that GPT is willing to pay is not possible," GPT said.
"GPT has maintained a disciplined approach and has consistently advised the market that it does not need to proceed with the transaction to achieve its strategic goals."
GPT's initial $2.94 billion bid in December for two-thirds of Australand's businesses was dismissed by its target as too low.
In a statement to the Australian Securities Exchange, GPT said it "would continue with its existing organic growth plans for its logistics and business parks and office portfolios and allocate capital accordingly".
But despite rejecting the offer as too low, Australand reportedly remains a takeover target.
One of the key issues was Australand's residential business, which GPT was not interested in and did not have a buyer for.
Australand's preference to avoid splitting up its business between the industrial, commercial and residential businesses had many analysts predicting the GPT bid would fail.